Reverse Mortgages

A reverse mortgage is a type of home equity loan that allows you to convert some of the existing equity in your home into cash. Equity is the current cash value of your home minus the current loan balance and any other liens on the property.

A reverse mortgage works like a traditional mortgage. Instead of making payments each month, your payments are deferred. As long as you continue to live in your home, pay your property taxes and homeowner’s insurance, and maintain the property, no monthly payment is required. Can you make payments? Of course! The funds received from a reverse mortgage may be used for most anything. It is a great option for leveraging your retirement income or to have handy in an emergency.

To qualify for a reverse mortgage, you must own your home and be over 62. You may choose to receive your reverse mortgage funds in a lump sum, monthly advances, as a line-of-credit, or a combination of the three. The amount of money you are eligible to borrow depends on your age, the amount of equity in your home, and which program you choose.

Many popular reverse mortgages are HECM’s (Home Equity Conversion Mortgages). HECM’s are guaranteed by the FHA and are non-recourse loans. This means you will never owe more than the property is worth or your loan balance whichever is less. There are also several private reverse mortgages. These allow for much higher loan amounts than a HECM.

There are many options to consider when structuring your loan and how to maximize your home equity. We will provide you with accurate and timely answers.


“This material is not from HUD or FHA and has not been approved by HUD or any government agency.”