Reverse Mortgage Loans
Turn home equity into cash flow and remove the monthly mortgage payment.
A reverse mortgage, most commonly an FHA insured Home Equity Conversion Mortgage, lets homeowners age 62 and older convert part of their home equity into usable funds without selling the home or taking on a required monthly principal and interest payment.
You keep title to your home. The loan balance grows over time and is repaid when the last borrower sells, moves out permanently, or passes away.
How a reverse mortgage works
The amount you can access depends on the age of the youngest borrower, current interest rates, and the value of the home. You can take the funds as a single draw, monthly payments, a growing line of credit, or a combination.
- You remain the owner and stay on title
- Property taxes, insurance, and upkeep remain your responsibility
- The loan becomes due when the home is no longer your primary residence
Reverse for purchase
A HECM for Purchase lets you buy a new primary residence with roughly half the purchase price as a down payment and no required monthly mortgage payment on the balance. It is a common move for retirees relocating or downsizing.
Counseling and protections
Every borrower completes a HUD approved counseling session before the loan is submitted. HECM loans are non recourse, which means you or your heirs never owe more than the value of the home when the loan is repaid.
Documents to gather
The file is lighter than a traditional mortgage but still requires verification.
- Photo ID and proof of age
- Mortgage statement for any existing lien
- Homeowners insurance declarations page
- Property tax statement
- Counseling certificate
Advantages
- No required monthly principal and interest payment
- You keep ownership of the home
- Line of credit option can grow over time
- Non recourse protection for you and your heirs
Things to consider
- The loan balance grows as interest and fees accrue
- Equity left to heirs is reduced
- Taxes, insurance, and maintenance must stay current
- Upfront and ongoing mortgage insurance premiums apply
Common questions
Do I still own my home?
Yes. You stay on title. The lender places a lien, just like any other mortgage.
What happens when I pass away?
Heirs can sell the home, refinance the balance, or turn the property over to the lender. Because the loan is non recourse, they never owe more than the home is worth.
Can I still make payments?
Yes. Payments are optional and any amount you pay reduces the balance and interest that accrues.
Program disclaimers
- * Higher interest rates apply
- ** For a 30-year, fixed-rate loan
- Program details are informational only and are not an offer for extension of credit or a commitment to lend. Terms are subject to change without notice.
Ready to explore Reverse Mortgage financing?
Start a conversation with a licensed loan officer, or begin your application whenever you're ready.