Reverse Mortgage Basics

Over 1 million US homeowners age 62 and over have already taken advantage of Home Equity Conversion Mortgages (HECMs), also known as government-insured reverse mortgage loans, to enjoy a more secure and comfortable retirement.

Introduction to Reverse Mortgages

Imagine living in your home without a traditional monthly mortgage payment, or instead, enjoying monthly loan proceeds from the years you’ve invested in your home. After you get a reverse mortgage on your primary residence, repayment is deferred until the home is sold, the last borrower passes away or permanently leaves the home.

A reverse mortgage is a unique mortgage designed for homeowners 62 and older (60 years or older for proprietary non-FHA-insured reverse mortgages). You may enjoy access to part of the value of your home and the freedom and comfort of the home you’ve known for so many years. It’s your home, now you can put it to work for you.

Reverse mortgage borrowers retain ownership and title to their home. It’s yours just as it was before, but now you may benefit from the equity that’s been building in your home for years. In addition, HECM (Home Equity Conversion Mortgage) reverse mortgage loans give you peace of mind since it is insured by the Federal Housing Administration (FHA).

What you need to know

  • No monthly mortgage payments. However the borrower must continue to pay property taxes, any HOA payments, homeowner’s insurance, and home maintenance costs.

  • Borrower must meet the financial requirements of the HECM program.

  • HECMs are insured by the Federal Housing Administration (FHA)

  • Deed stays in borrower’s name*

  • HECM loans can be used for a new home purchase

Ways to receive the loan proceeds

  • Lump sum

  • Monthly installments

  • HECM growing line of credit

  • A combination of the above

Ready to get started?

Use our free Calculator to see how much you may qualify for!

Still not sure if a Reverse Mortgage is right for you? Follow this link to learn about How it Works…

This information is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice. These materials are not from HUD or FHA and were not approved by HUD or a government agency. * There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to maintain the home as their primary residence, pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.