Reverse Mortgages
Reverse Mortgages
A reverse mortgage allows homeowners 62 and older to convert a portion of their home equity into tax-free cash — without making monthly mortgage payments. The loan is repaid when the last borrower leaves the home. It can be a powerful retirement planning tool when used wisely.
Program Highlights
No Monthly Mortgage Payments
Borrowers are not required to make monthly principal or interest payments. The loan balance grows over time and is repaid when the home is sold or vacated.
Tax-Free Proceeds
Funds received from a reverse mortgage are generally not considered taxable income — consult your tax advisor for your specific situation.
Stay in Your Home
You retain title to your home and can live there as long as you maintain the property, pay taxes and insurance, and comply with loan terms.
Flexible Payout Options
Receive funds as a lump sum, monthly payments, a line of credit, or a combination — tailored to your retirement income needs.
FHA-Insured HECM
The Home Equity Conversion Mortgage (HECM) is the most common reverse mortgage and is insured by the FHA, providing protections for borrowers.
Non-Recourse Loan
You or your heirs will never owe more than the home is worth at the time of repayment, even if the loan balance exceeds the home value.
Types of Reverse Mortgages
HECM (Home Equity Conversion Mortgage)
The federally insured reverse mortgage backed by FHA. Requires HUD-approved counseling and offers the strongest borrower protections. Most common option.
HECM for Purchase
Use a reverse mortgage to buy a new primary residence — ideal for downsizing or relocating in retirement without taking on monthly mortgage payments.
Proprietary Reverse Mortgage
Private, non-FHA reverse mortgages for higher-value homes that exceed HECM loan limits. May offer larger loan amounts for luxury or high-equity properties.
Single-Purpose Reverse Mortgage
Offered by some state and local agencies for a specific purpose such as home repairs or property taxes. Lower cost but limited availability.
Eligibility Requirements
- Borrower must be 62 years of age or older
- Home must be your primary residence
- Sufficient home equity (typically 50% or more)
- Must complete HUD-approved reverse mortgage counseling
- Property taxes, homeowner's insurance, and HOA fees must remain current
- Home must meet FHA property standards and be well-maintained
- No federal debt delinquencies (e.g., student loans, federal taxes)
Important Considerations
- •The loan balance grows over time as interest accrues — this reduces the equity available to heirs.
- •If you move out, sell the home, or fail to maintain taxes and insurance, the loan becomes due.
- •HUD-approved counseling is required before closing — we will connect you with a certified counselor.
- •Heirs may repay the loan balance and keep the home, or sell the home to satisfy the debt.
Is a Reverse Mortgage Right for You?
A reverse mortgage is not right for everyone — but for the right borrower, it can provide meaningful financial flexibility in retirement. Let us walk you through the numbers and help you decide.
Ready to Get Started?
Let our family help yours. Call us at 561-207-8082 or apply online today.