By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 23, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: The VA doesn’t offer a reverse mortgage. Veterans 62 and older can use an FHA-insured HECM or a private reverse mortgage, including to pay off an existing VA loan and eliminate the monthly payment. VA disability compensation and military retirement pay aren’t reduced by a reverse mortgage.
A HECM must be the only lien, so your VA loan gets paid off at closing. Your VA entitlement stays tied to that property unless restored (see restoring VA entitlement).
A VA IRRRL to lower the payment, or a VA cash-out refinance (up to 90% of value, and higher in some cases), if you prefer a traditional loan.
Many states, including California, reduce property taxes for disabled veterans, which helps meet HECM property-charge obligations.
Be wary of offers that claim VA endorsement. The VA doesn’t endorse reverse mortgage lenders.
No. Veterans use FHA HECMs or private reverse mortgages.
Yes, if you qualify. The VA loan is paid off at closing.
No.
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Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.