One in Five Seniors Seeking Reverse Mortgages Face Budget Deficits, New GreenPath Data Finds
Key Takeaways:
- In 2025, 21.1% of GreenPath Financial Wellness' reverse mortgage clients had a monthly budget deficit. This is nearly double the rate of 12.2% in 2024.
- Average budget deficits increased by nearly $300 to $1,793 per month.
- In 2025, 50% of reverse mortgage clients lived on less than 50% of Area Median Income (AMI); across 2024-2025, 23% lived on less than 30% of AMI.
- GreenPath has been awarded the Comprehensive Housing Counseling grant from HUD, with $455,000 in funds going towards free HECM counseling for vulnerable seniors.
FARMINGTON HILLS, Mich., April 21, 2026 /PRNewswire/ -- New analysis from GreenPath Financial Wellness reveals a growing number of seniors seeking reverse mortgages are facing significant and worsening financial strain.
GreenPath – a HUD- and NFCC-approved national nonprofit that has helped Americans live financially healthy lives for over 65 years – reviewed data from reverse mortgage counseling clients over the past two years and found that both the prevalence and severity of budget deficits increased sharply from 2024 to 2025. Reverse mortgages are a popular option for retirees with fixed or limited incomes that cannot support their expenses.
In 2025, 21.1% of reverse mortgage clients entered counseling with a deficit in their monthly budget, nearly double the 12.2% of clients in 2024. The average deficit amount also deepened from $1,498 to $1,793 per month.
"These are not small gaps," said Jennifer Fraser, Director of Stakeholder Engagement & Grants at GreenPath. "Budget shortfalls of this size often mean struggling to afford essential living costs like housing, healthcare, utilities, and food. Since funds from a reverse mortgage can be used for almost anything, it becomes a lifeline in times of financial hardship."
Reverse Mortgage Clients Are Predominantly Low-Income
Income trends underscore the financial stress many seniors face. In 2025, half of all GreenPath reverse mortgage clients lived on less than 50% of their Area Median Income (AMI). Across 2024 and 2025 combined, approximately 23% of clients fell into the very low-income bracket of household income below 30% of AMI.
Reverse mortgages go beyond a retirement planning tool to be a strategy to make ends meet for many households.
Financial Strain Increases Sharply With Age
GreenPath's data also reveals a clear age-based correlation: deficit rates increased for older age groups, with the 80+ age group experiencing the largest increase in deficit rates, more than doubling from 12.6% in 2024 to 25.8% in 2025.
As age increases, fixed incomes often fail to keep pace with rising living and healthcare-related expenses, leaving fewer options to address growing financial shortfalls. For older seniors in the 80+ age group, low income exacerbates risk as 58.8% of this group lives on less than 50% AMI.
These startling patterns of growing budget deficits among older, low-income seniors highlight the need for objective guidance and assistance for these financially vulnerable populations.
Expanding Access to Free Counseling for Vulnerable Seniors
To meet this growing need, GreenPath received a supplementary award to the Comprehensive Housing Counseling grant from HUD(1). Proceeds from this $455,000 grant will support funding Home Equity Conversion Mortgage (HECM) reverse mortgage counseling sessions until September 2026 or all funds are used, strengthening the organization's ability to provide this required counseling service at no cost to seniors facing increasing financial hardship.
"Many seniors have spent their lives working hard to own a home, so drawing on its equity can seem like an obvious choice. But there are a lot of pros and cons to consider first. This grant helps ensure that older adults living on strained incomes don't have to navigate complex financial decisions alone," said Jennifer.
Through its free counseling, GreenPath helps vulnerable seniors nationwide understand their options and make decisions with confidence.
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About GreenPath Financial Wellness
GreenPath Financial Wellness is a trusted, national nonprofit on a mission to empower people to lead financially healthy lives. Founded in 1961 and headquartered in Farmington Hills, Michigan, GreenPath offers free financial and housing counseling with NFCC- and HUD- certified experts. If you're struggling to budget, manage debt, or reach your financial goals, you are not alone. Contact GreenPath at (866) 648-8122 or visit www.greenpath.com.
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SOURCE GreenPath Financial Wellness
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