--- title: "Colorado Reverse Mortgage Guide (HECM 2026)" url: https://www.hecmacademy.com/reverse-mortgage/colorado description: "Colorado HECM reverse mortgage guide for homeowners 62+. Learn how FHA lending limits affect Colorado properties, what state consumer protections apply, how H" lang: en --- State Guide # Reverse Mortgage (HECM) Guide for Colorado Homeowners 62+ Colorado has approximately 370,000 homeowner households led by someone 62 or older. The state's median home value of $490,000 — pushed higher by the Denver metro, Boulder, and Front Range growth — means many Colorado seniors have built meaningful equity. For retirees managing rising costs in a high-cost state, a HECM can provide supplemental income or eliminate monthly mortgage payments. Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007) 2026 FHA Lending Limit ## $1,249,125 Colorado's median home values fall comfortably below the 2026 FHA HECM limit of $1,249,125, so most Colorado homeowners can calculate HECM proceeds against their full appraised value. Luxury mountain properties in markets like Aspen or Vail may exceed the cap. Source: HUD Mortgagee Letter 2025-21 ## Colorado Reverse Mortgage Protections Colorado follows federal HUD requirements for HECM counseling without adding separate state mandates specific to reverse mortgages. Colorado's general mortgage lending statutes (C.R.S. § 5-3.5) provide baseline consumer protections, and the state's Division of Banking oversees lender conduct. Source: Colorado Revised Statutes § 5-3.5; Colorado Division of Banking ## HUD-Approved Counseling in Colorado Federal law requires an independent counseling session before any HECM application. Counseling can be done by phone and typically takes 60–90 minutes. Find a HUD-approved counselor in Colorado → (https://hudapps.hud.gov/HUDApps/HECMCounselorsApp/?state=CO) ## Colorado HECM FAQ ### Are HECMs available in Colorado? Yes. HECMs are available throughout Colorado, including rural and mountain communities. Any FHA-approved lender licensed in Colorado can originate a HECM on an eligible primary residence. ### Does Colorado require additional reverse mortgage counseling beyond federal requirements? No. Colorado relies on the federal HUD counseling mandate. Before any HECM application, you must complete a one-on-one session with a HUD-approved independent counselor — but there is no additional Colorado-specific counseling requirement. ### How do Colorado property taxes interact with a HECM? Colorado HECM borrowers must keep property taxes current. Colorado offers a Senior Property Tax Exemption that exempts 50% of the first $200,000 of a primary residence's value for qualifying seniors 65 and older who have lived in their home for at least 10 years. This can meaningfully reduce annual tax obligations — important when holding a HECM. ### What if I have a HELOC on my Colorado home? An existing HELOC must be paid off and the line closed at HECM closing, because a HECM must be the first and only lien. The HELOC payoff typically comes from HECM proceeds. If your HELOC balance is high relative to available equity, a lender will assess whether the HECM makes financial sense after payoff. ### Where can I find a HUD-approved HECM counselor in Colorado? Use the HUD HECM Counselor Search (link above) filtered to Colorado. Phone counseling is widely available, making it accessible to homeowners in rural or mountain communities across the state. ### Compare nearby states - Reverse Mortgage Guide for Arizona →: https://www.hecmacademy.com/reverse-mortgage/arizona - Reverse Mortgage Guide for Utah →: https://www.hecmacademy.com/reverse-mortgage/utah Estimate your HECM — Colorado homeowners →: https://www.hecmacademy.com/#prequal?src=state_colorado ## Get the Free HECM Guide (PDF) An 8-page plain-English guide to how the FHA HECM works — sent straight to your inbox. Check Eligibility: https://www.hecmacademy.com/#quickcheck Call: +18882038887 ## Structured data ```json [ { "@context": "https://schema.org", "@type": "WebSite", "name": "HECMAcademy", "url": "https://hecmacademy.com", "description": "Independent, plain-English reverse mortgage education for U.S. homeowners age 62 and older. 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