Reverse mortgage in Utah

A 5 day waiting law, federal loan rules and local tax relief apply to a reverse mortgage Utah homeowners use to borrow against their home equity. The main federal loan, called a HECM or Home Equity Conversion Mortgage, lets you borrow equity with no monthly mortgage payments. Only when you move out, sell or pass away do you repay the reverse mortgage. From October 2025 to August 2026, Utah homeowners took out 657 HECMs. Most stayed put, but 105 bought a home with a HECM for purchase and 57 refinanced an older HECM.

Utah's senior property tax deferral and county abatement of $1,412

For any HECM, federal rules say you must pay property taxes and homeowners insurance, no matter your state. Also, you must keep the house in good condition and use it as your main home. Utah's 2 county relief programs are key, because missing property tax payments can lead to a loan default.

Low-income county abatement: up to $1,412 off your taxes

A county discount that permanently lowers your yearly tax bill is called an abatement. Counties follow Utah State Tax Commission Publication 36 to cut the tax you owe this year by 50%, with savings no higher than $1,412. You have to be 67 or older, or prove a disability or hardship, and your income must stay below $44,221. By September 1, give your county proof of income, ownership and disability or hardship so the lower bill arrives when it should.

Mandatory Senior Deferral Program starting at 75

A deferral is a government-approved delay that moves your property tax payment to a later date. The Mandatory Senior Deferral Program requires you to be at least 75 and have a 2025 household income that doesn't exceed $88,442. You'll also need your mortgage holder's consent, and you have to follow residency and home value rules. County figures aren't always the same. The Salt Lake County Treasurer posts an income cap of $81,680 and a September 1 due date, unless it's pushed back.

Utah Reverse Mortgage Act's 5-day cooling off rule

A mandatory pause under state law keeps you from feeling rushed into a loan. The Utah reverse mortgage cooling off law says the waiting period begins when you accept a lender's written commitment, also in writing. A lender can't lock you into the loan until 5 days have passed from that acceptance date. In those 5 days, the lender can't make you close or move forward on the reverse mortgage. You can't waive this right, so no one is allowed to ask you to give up your waiting period.

Does the Utah Department of Commerce, along with the Department of Financial Institutions, supervise lenders?

In Utah, 2 state bodies share mortgage oversight based on what a company does. Setting up a new loan with you is called origination, and managing your account after closing is servicing. For primary home mortgages, brokering and retail origination are regulated by the Utah Division of Real Estate, which is under the Utah Department of Commerce. Servicing and wholesale lending fall under the Utah Department of Financial Institutions. There are 114 active reverse mortgage lenders in Utah for you to compare, along with 3 HUD-approved counseling agencies to contact. When something goes wrong, submit a consumer complaint to the Department of Commerce for their review.