Reverse Mortgages

A reverse mortgage is a type of loan available to homeowners age 62 and older that allows them to convert part of their home equity into cash without having to sell their home or make monthly mortgage payments.

The loan is repaid when the borrower sells the home, moves out permanently, or passes away.

At least one borrower must be age 62 or older.

Yes, the borrower must live in the home as their primary residence.

Yes, borrowers must have sufficient equity or own the home outright.

Yes, borrowers must complete HUD-approved counseling.

The most common reverse mortgage is a HECM (Home Equity Conversion Mortgage) insured by the FHA.

Reverse mortgages may be beneficial for:

• Retirees needing supplemental income
• Seniors looking to eliminate monthly mortgage payments
• Homeowners planning to age in place
• Borrowers wanting to access equity without downsizing

No monthly mortgage payments are required. Borrowers must still pay property taxes, insurance, and maintain the home.

Funds may be received as a lump sum, monthly payments, a line of credit, or a combination of these options.

Yes, reverse mortgages may be used for downsizing or relocating through a reverse purchase option.

Yes, a one-time down payment is typically required, generally between 45% and 70%.

Yes, borrowers may use a reverse mortgage refinance to eliminate existing mortgage payments or access additional cash.

Funds may be used for expenses such as:

• Medical expenses
• Home renovations
• Daily living costs