Reverse mortgage in Oregon

You can borrow from your home's value with the reverse mortgage Oregon homeowners use. Under state rules, that money counts as a loan, not income. The usual choice is the federal program called Home Equity Conversion Mortgage, or HECM. There are no monthly mortgage payments to keep up with. The loan comes due once you move out or sell, and that's the key to how a reverse mortgage works. From October 2025 through August 2026, HUD insured 509 HECMs in Oregon, and 32 of those helped buy a home. Oregon has 5 HUD-approved counseling agencies, and you'll speak with 1 of them before you apply.

Is it possible to combine a reverse mortgage with Oregon's $70,000 property tax deferral?

To qualify, any reverse mortgage you have must have closed July 1, 2011 or later and before January 1, 2017. At the time you apply, your home equity needs to be at least 40 percent. Federal reverse mortgage rules require you, in every state, to pay property taxes and homeowners insurance. Additionally, the home must be your main residence and you have to keep it in good repair. Missing property tax payments can trigger a loan default, so these programs are important.

Through Oregon's Property Tax Deferral for Disabled and Senior Homeowners program, eligible owners can borrow state money to cover their county property taxes. Every November 15, your county is paid by the state, which also puts a lien on the home you own. When a lien is placed on your property, it represents a legal claim that you clear when the property is sold. Interest on deferred taxes is simple and not compounded, at a yearly rate of 6 percent. You settle the taxes and interest at the time the lien is removed.

The limit for a household in 2026 is $70,000; it uses 2025 income from you and a spouse who lives at home. File your application with the county assessor by April 15. You can apply late from April 16 to December 1, but there's a fee. Oregon law, under ORS 311.670 and ORS 311.700, says lenders may not keep eligible homeowners out of the program.

Growing loan balances and Oregon's House Bill 2188

Oregon's 2009 negative amortization law, House Bill 2188, started January 1, 2010 and leaves out reverse mortgages. With negative amortization, your loan balance increases as interest accumulates over time. Because of that exclusion, a reverse mortgage escapes the law's tests on repayment ability and its limits on prepayment penalties. To satisfy the exclusion, a reverse mortgage lender in Oregon needs either a state license or a license through United States federal law. The rules for federal lender licensing cover every state. Standard reverse mortgage requirements still apply to you.

How are reverse mortgage payouts treated under rule OAR 461-145-0330 when you apply for state benefits?

When you apply for state benefit programs, payouts from a reverse-annuity mortgage are treated as loans, not income. A reverse-annuity mortgage is a type of loan that changes your home equity into a stream of regular payments. The Oregon Department of Human Services sets this protection in rule OAR 461-145-0330, treating the payouts like a home equity loan.

What the Oregon Division of Financial Regulation requires of reverse mortgage lenders

Residential mortgage loan servicers in Oregon are supervised by the Oregon Division of Financial Regulation. Complaints about unlawful behavior by an Oregon licensee or by a person who must have an Oregon license are also taken by the division. You can call the division at 888-877-4894 or visit dfr.oregon.gov to file a complaint.