The loan becomes due when the last borrower dies, sells, or moves out for 12+ months. There are several ways it gets repaid:
The most common outcome. Home is sold. Sale proceeds pay off the reverse mortgage balance. Any remaining equity goes to you or your heirs. The FHA non-recourse rule means you never owe more than the home's value.
Heirs can keep the home by paying 95% of the appraised value or the full loan balance — whichever is less. They can use a new mortgage, savings, or other funds. They have up to 12 months (with extensions).
If the home is worth less than the balance, heirs can sign the deed to the lender — no foreclosure, no deficiency, no impact on their credit.