A reverse mortgage is a loan that converts a portion of your home equity into cash. If you've ever had a HELOC then you're already familiar with the concept of tapping into your equity, or, said another way, borrowing against the value of your home. Think of it as accessing the savings you've built up in your home over the years.
Reverse mortgages have a lot of special characteristics and safeguards. Here are some highlights:
With a traditional mortgage, you're required to make monthly payments to the lender. But with a reverse mortgage, you get to CHOOSE if you want to make a monthly mortgage payment or not. While payments aren’t required, most professionals will recommend making them when possible because it creates a beautiful line of credit that increases over time!
There is no pre-defined loan term (15 year, 30 year, etc.). If you get the reverse mortgage when you are 62 and live to 142, you could potentially take advantage of the reverse mortgage for 80 years 😯. The loan becomes due when the last borrower sells the home, the home is no longer their principal residence, the borrower fails to pay property charges (taxes, insurance, HOA/Condo dues, etc.), or fails to maintain the home in good condition.
Reverse mortgage borrowers are protected against being upside down when the loan is due. This non-recourse feature allows you or your heirs to settle the debt for the LESSER of the loan balance or the property value. Any remaining equity goes to you or your heirs/estate.
We believe it's important to explore all your options. Together, we can do side-by-side comparisons of several loan products so you can make an informed decision that will be best for you now and, in your future.
Eligibility is straightforward. Here are the basic requirements:
👱At least one spouse must be 62 years old (55+ in select states).
👱You must be a U.S. citizen or lawful permanent resident.
👱You must not be delinquent on any federal debt.
👱You must have sufficient income/assets to continue paying your property charges (insurance, taxes, HOA fees, etc.).
🏡The home must be your primary residence.
🏡The home must meet basic FHA requirements for safety, security, and marketability.
🏡Condos must be FHA approved or be willing to provide documentation for approval.
🏡Manufactured homes must have been constructed on or after June 15, 1976 and be attached to a permanent foundation.
❌MYTH: The bank will take ownership of my home.
✅FACT: You retain the title and full ownership of your home, just as you would with a traditional mortgage.
❌MYTH: I can be forced to leave my home.
✅FACT: As long as you meet the loan obligations like paying taxes, paying insurance, maintaining the home, and living in the home as your primary residence, you can live there for the rest of your life. We can't force you to leave your home for living longer than we expected!
❌MYTH: My children will be stuck with a huge bill.
✅FACT: A reverse mortgage is a "non-recourse" loan. This means the amount you owe the lender can never be more than the value of the home when the loan becomes due. No other assets are at risk. Your heirs can choose to pay off the loan and keep the home or, sell it and repay the loan. Any remaining equity belongs to your heirs.
💳 Pay off an existing mortgage or other debt
💵 Supplement retirement income
💷 Pay property taxes or other bills
📉 Avoid selling assets during down markets
✅ Eliminate the burden of monthly mortgage payments*
🕒 Delay Social Security
🛡️ Preserve retirement savings and protect investments
🧭 Help navigate a gray divorce
💰Establish a line of credit for use as a financial safely net
*Keeping current with property taxes, insurance, and maintenance required
📬 Receive tax-free monthly income
🏥 Manage the costs of in-home care or medical expenses
✈️ Travel or other lifestyle enhancements
🎁 Provide financial gifts to loved ones
🔧 Fund home improvements or safety upgrades
🏠 Purchase a new home—relocate, upgrade, or downsize
🛋️ Stay at home with more comfort and independence
👨👩👧👦 Ease financial stress on adult children and/or the need to rely on others
🙃 Never repay more than the value of the home at the time of payoff. You literally can never go upside down!
Your Funds, Your Choice!
🙋 What would YOU do with your proceeds?!? 🙋
The reverse mortgage process includes several consumer protections to ensure you are making an informed decision:
Education & Learning: The first step is what you're doing now! Learning from a trusted source. Our priority is that you and your family feel informed, supported, and confident before making any decisions.
Independent Counseling: You are required to meet with a HUD-approved counselor to discuss the pros, cons, and alternatives. This is for your protection and to ensure you understand the loan.
Application & Financial Assessment: We'll complete your application and a financial assessment to confirm your ability to keep up with property-related expenses like taxes and insurance.
Appraisal & Underwriting: An independent appraiser will determine the value of your home, and your loan will be reviewed for approval.
Closing: Once approved, you sign the final documents and decide how you want to receive your funds. Depending on what type of reverse mortgage you have, funds may come in the form of a lump sum, monthly payments, or a line of credit.