A reverse mortgage Virginia loan turns home equity into cash for homeowners 62 and older through 68 active lenders under state supervision. Once you understand how a reverse mortgage works, you'll see there's no monthly mortgage bill while you live in the home. Federal insurance backed 604 HECMs in Virginia between October 2025 and August 2026, higher than 585 during the 2025 fiscal year. For that group, the median home value came to $365,000 and the median initial principal limit was $161,667. The total money you can borrow before you pay off any current mortgage is your initial principal limit. While 24 purchased a home and 75 refinanced an old reverse loan, most keep living where they are. Another 15 loans hit the national lending limit for 2026, which is $1,249,125. You'll meet with a counselor before you apply, and 6 counseling agencies approved by the federal government operate in Virginia.
How the Virginia Bureau of Financial Institutions oversees lenders
A division of the State Corporation Commission, the Virginia Bureau of Financial Institutions oversees reverse mortgage lenders across Virginia. Mortgage brokers, lenders and originators all fall under its regulation. The person who handles your loan application and walks through the terms is an originator. To be sure a lender is properly registered, you're able to look up their license through the Commission's website before you sign. Consumer complaints about the companies it oversees are also reviewed and answered by the Bureau. The Virginia Attorney General's office points out, however, that the Bureau won't serve as your attorney. Your complaint can't be adjudicated by it either. Acting like a judge and issuing a binding legal decision is what adjudicate means. You can call the Bureau at 804-371-9657. For federal help, the Consumer Financial Protection Bureau handles mortgage complaints at (855) 411-2372.
Does Virginia Code 58.1-3210 allow property tax relief for you?
Virginia Code 58.1-3210 permits counties and cities to provide real estate tax relief to older owners. Local programs like these are important because federal reverse mortgage rules say you have to pay property taxes and homeowners insurance. The house has to be your main home, and you must keep it in good shape too. Your loan could go into default if you get behind on property taxes. Your locality can pass an ordinance to offer tax exemptions, deferrals or both together. Part of your tax bill is forgiven with an exemption, and a deferral pushes the payment to a later date. Your locality controls what's available and the terms. You must be at least 65, own the home and live there as your only residence to qualify. Owners who are permanently and totally disabled can also be included by a locality. Not every local rule covers your full tax bill. The portion forgiven or delayed is just the increase in tax since you reached 65, became disabled or the rule took effect, picking the latest date.
Virginia Code 6.2-881 on bank investments
Reverse annuity mortgages are an investment a bank can make, per Virginia Code 6.2-881. However, it's limited to the scope and method spelled out by State Corporation Commission regulations. This isn't a borrower safeguard like counseling or a cooling-off period; it's a law aimed at banks. Federal rules give you your main protections as a borrower for a HECM in Virginia.
