For Homebuyers & Homeowners
Reverse Mortgage Loan
Improve your life by cashing in on your home’s equity.
Reverse Mortgage Loan Features
No monthly mortgage payments required — borrowers must still pay property taxes, homeowner’s insurance, and maintain the home.
Access funds through a lump sum, monthly payments, line of credit, or a combination.
Allows seniors to stay in their home while tapping into equity.
Loan balance grows over time as interest and fees are added, but you’ll never owe more than the home’s value at the time of sale (FHA guarantee).
Non-recourse loan — heirs aren’t personally liable for repayment beyond the home’s value.
Eligibility Requirements:
- Must be 62 years or older.
- Must live in the home as your primary residence.
- Must have sufficient equity in the home (typically 50% or more).
- The property must meet FHA requirements (single-family homes, certain condos, and some multi-unit properties).
- Borrowers must complete HUD-approved counseling before closing.
Frequently Ask Questions
Q: What is a Reverse Mortgage?
Answer: A Reverse Mortgage is a loan available to homeowners age 62 or older that allows them to convert part of their home equity into cash. Unlike a traditional mortgage, there are no monthly mortgage payments — repayment happens when the homeowner sells, moves out permanently, or passes away.
Q: Do I still own my home with a Reverse Mortgage?
Answer: Yes. You retain ownership and title to your home as long as you follow loan requirements (paying property taxes, homeowner’s insurance, and maintaining the property). The lender only recoups funds once the home is sold or the loan becomes due.
Q: How is a Reverse Mortgage different from a traditional mortgage?
Answer: With a traditional mortgage, you make monthly payments to reduce your loan balance. With a reverse mortgage, it works the other way around — the lender makes payments to you, and your loan balance increases over time instead of decreasing.
Q: How do I receive the money from a Reverse Mortgage?
Answer: You can receive your funds as a lump sum, as monthly payments that provide steady income, as a line of credit you can draw from when needed, or as a combination of these options depending on your financial goals.
Q: What happens to my home when I pass away?
Answer:When the borrower passes away, the loan becomes due. Heirs can sell the home to repay the loan and keep any remaining equity, or they can pay off the balance (often by refinancing) to keep the property. If the loan balance is greater than the home’s value, the lender absorbs the loss — heirs are never personally responsible.