Yes. The mortgage insurance premium that you pay for your reverse mortgage is deductible in the year paid, as long it is NOT prepaid mortgage insurance, and the following requirements are met:
- It must be qualified mortgage insurance. Qualified mortgage insurance includes mortgage insurance provided by the federal housing administration. Please refer to page 8 of pub 936 for additional clarification. https://www.irs.gov/pub/irs-pdf/p936.pdf
- The insurance must be in connection with home acquisition debt. According to page 9 of pub 936, under the heading, "home acquisition debt", "home acquisition debt is a mortgage you took out after October 13, 1987, to buy, build, or substantially improve a qualified home (your main or second home). It also must be secured by that home". Please see pages 9-10 of pub 936 for additional clarification.
- The insurance contract must have been issued after 2006
If this is prepaid mortgage insurance, please refer to page 8 of pub 936, under the heading, "special rules for prepaid mortgage insurance" for additional information.
