“The Cash Offer Company”
If you or a loved one has a reverse mortgage and need to sell the house, you’re not alone — and you’re not stuck. While reverse mortgages add a few more steps, it’s absolutely possible to sell the property and walk away with cash in hand (if there’s equity left).
In this guide, we’ll explain everything Virginia homeowners need to know about selling a house with a reverse mortgage in 2025, including:
- How reverse mortgages work
- Your rights and obligations when selling
- How to pay off the loan (even if the borrower passed away)
- How to sell the home as-is to a cash buyer like The Cash Offer Company
What Is a Reverse Mortgage?
A reverse mortgage is a special type of home loan available to homeowners aged 62 and older. Instead of making monthly payments, the homeowner receives payments from the lender based on the home’s equity.
The most common type is the Home Equity Conversion Mortgage (HECM), which is federally insured through HUD.
Key characteristics of a reverse mortgage:
- No monthly mortgage payments
For more details, visit HUD’s official HECM page.
Can You Sell a House With a Reverse Mortgage in Virginia?
Yes — you can sell your house at any time, even with an active reverse mortgage. Just like any other mortgage, the loan needs to be paid off when you sell. You or your estate keeps any leftover equity after the loan and fees are paid.
When is a reverse mortgage due?
The full loan balance becomes due and payable when:
- The borrower sells the home
- The borrower moves out permanently (e.g. into a nursing facility)
- The borrower passes away
- Property taxes or insurance go unpaid, or the home is no longer maintained
How to Sell a House With a Reverse Mortgage in Virginia
Here’s a step-by-step look at the process:
- Contact the loan servicer. Request a payoff quote and ask for a full breakdown of any fees, interest, and insurance.
- Determine the home’s value. If the home is worth more than the loan balance, you can sell it and keep the remaining equity.
- Choose how to sell. You can list it with an agent, sell to a cash buyer like The Cash Offer Company, or have the estate handle the sale if the owner has passed.
- Pay off the loan at closing. The reverse mortgage is paid first, and you or the estate receives what’s left (if anything).
What If the Home Is Worth Less Than the Loan?
Under the HECM program, reverse mortgages are **non-recourse loans** — meaning you or your heirs will never owe more than the home is worth, even if the loan balance is higher.
You can sell the home for 95% of its appraised value and have HUD cover the shortfall. This process is called a **short payoff under HECM rules** and is typically handled through the loan servicer.
Can Heirs Sell a House With a Reverse Mortgage After the Owner Dies?
Yes. If the borrower passed away, the heirs or estate administrator must act quickly. Here’s what usually happens:
- The loan becomes due immediately
- The estate typically has **6 months to repay** the loan or sell the house
- Extensions of up to 12 months total may be granted if progress is being made
Heirs can choose to:
- Sell the house and pay off the loan
- Refinance the reverse mortgage into a regular loan (if they want to keep the home)
- Sign a deed-in-lieu of foreclosure if they don’t want the home
Important: If no action is taken, the lender may begin foreclosure.
What Fees Are Involved?
Reverse mortgages often carry higher closing costs and fees compared to traditional loans. These may include:
- Mortgage Insurance Premium (MIP)
- Loan origination fees
- Servicing fees
- Accrued interest
All of these are paid off at the time of sale — and are already included in your payoff quote.
Selling As-Is to a Cash Buyer With a Reverse Mortgage
Many homeowners or heirs don’t want to deal with listing the property, making repairs, or coordinating inspections — especially if there’s a deadline from the reverse mortgage servicer.
This is where a cash sale makes sense.
At The Cash Offer Company, we buy houses in Virginia with reverse mortgages in any condition — no agents, no clean-up, and no repairs needed.
Benefits of working with us:
- We work with reverse mortgage lenders directly to help you close fast
- No commissions or fees — what we offer is what you get
- As-is sales: No repairs, inspections, or delays
- Flexible closing dates: 7–30 days depending on your needs
Where We Help Homeowners in Virginia
- Richmond (including Church Hill, Jackson Ward, Northside)
- Powhatan, Henrico, Petersburg, Midlothian
- We also serve Mechanicsville, Chester, Glen Allen, and surrounding areas
FAQs: Selling a House With a Reverse Mortgage
Do I need to pay off the reverse mortgage before selling?
No. The loan is paid off at closing using the proceeds from the sale.
What if I owe more than the house is worth?
HECM rules let you sell for 95% of appraised value — you’ll never owe the difference.
Can I sell a house with a reverse mortgage if the borrower has died?
Yes. The estate or heirs can sell the property or settle the debt with the lender directly.
How fast can I sell a reverse-mortgaged house?
With a cash buyer like us, we can often close in as little as 7–14 days.
Why Work With The Cash Offer Company?
We’re a local, family-run cash home buyer that understands the reverse mortgage process — and we’re here to make things easy during what can be a stressful time.
Whether you’re downsizing, relocating, or managing a parent’s estate, we’ll buy your house as-is, on your schedule, and work with the lender to ensure a clean, quick closing.
Take the Next Step
Need to sell a house with a reverse mortgage in Virginia? Contact The Cash Offer Company today. We’ll make you a fast, fair cash offer — and help you navigate the entire process from start to finish.
Contact Information
The Cash Offer Company
Phone: 804-215-4004
Email: info@thecashoffercompany.com
Website: https://www.thecashoffercompany.com/
Disclaimer: This blog is for informational purposes only. It does not constitute financial, legal, or mortgage advice. For guidance about reverse mortgages or estate matters, consult a HUD counselor or licensed professional.