top of page

WHAT IT IS AND HOW IT WORKS

Are you a senior homeowner (62 or older) with built-up home equity but unsure how to access it without selling? A reverse mortgage could be the ideal way to get extra income or cash while staying in your home!

What is a Reverse Mortgage?

A reverse mortgage lets you turn part of your home equity into cash to supplement retirement income or cover expenses. It’s called “reverse” because, instead of you paying the lender, the lender pays you. Best of all, you keep ownership of your home and can pass it on to your heirs.

Reverse Mortgage Benefits

Benefits of a Reverse Mortgage:

  • Supplement your retirement income: Use the funds for daily expenses, travel, or anything you choose.

  • No monthly mortgage payments: The loan is repaid only when you sell the home or no longer live in it.

  • No credit or income requirements: You don’t need a strong credit score or steady income to qualify.

  • Retain ownership of your home: Keep your home and pass it on to your heirs.

  • Tax-free equity: The money you take out is generally tax-free.

If you’re a homeowner looking to make the most of your hard-earned equity and boost your retirement income, a reverse mortgage could be the perfect solution. Contact us today to learn more!

Reverse Mortgage FAQs

If you own a home, you may have questions about reverse mortgages, such as:

  • Do I need to be a certain age to qualify?

  • What happens when I or my spouse passes away?

  • How can I use the funds from a reverse mortgage?

  • Why can’t I access all my home equity at once?

These are common concerns for many homeowners. Explore our reverse mortgage FAQs to get clear answers and learn more.

What is a reverse mortgage?

A reverse mortgage is a loan for homeowners aged 62 or older that lets you convert part of your home equity into cash. Unlike a traditional mortgage, you don’t make monthly payments—the loan is repaid only when you sell the home, move out, or pass away. This flexible option allows seniors to access the value of their home and supplement their finances without meeting the stricter requirements of standard mortgage loans.

Is there an age limit for a reverse mortgage?

To qualify for a reverse mortgage, at least one homeowner must be 62 years or older. This minimum age requirement, set by the Department of Housing and Urban Development (HUD)*, ensures the loan serves as a long-term financial solution for seniors, helping to supplement retirement income.

How do I qualify for a reverse mortgage?

To qualify for a reverse mortgage, several requirements must be met:

  • Age: At least one homeowner must be 62 or older.

  • Home equity: You must have equity in your home—the more equity, the higher the potential loan amount.

  • Primary residence: The property must be your main home.

  • Ongoing responsibilities: The home must be well-maintained, and you must stay current on property taxes and homeowners insurance.

Consulting with a reverse mortgage professional can help you fully understand all eligibility criteria and ensure this option is right for you.

Do I need to own my home outright to qualify for a reverse mortgage?

You don’t need to fully own your home to qualify for a reverse mortgage, but you must have equity in the property. Reverse mortgages let homeowners convert part of their home equity into cash, which can be received as a lump sum, monthly payments, or a line of credit.

Can I use the money from a reverse mortgage for anything I want?

​You can use the money from a reverse mortgage for virtually anything you desire. It is your money; drawn from the equity you've built up in your home over the years. Common uses for a reverse mortgage payout include supplementing retirement income, making necessary home improvements, funding in-home care, or even just enjoying a more comfortable retirement. Some people also use the funds to pay off existing debts, travel, or help family members. In some cases, you could even use the money from your reverse mortgage to purchase another home, although this would typically require a specific type of reverse mortgage known as a Home Equity Conversion Mortgage for Purchase (HECM for Purchase).

Can I have a reverse mortgage on a second home or investment property?

​You cannot get a reverse mortgage on a second home or investment property. One of the main requirements is that the home must be your primary residence, since reverse mortgages are designed to help seniors access equity while staying in their homes. Secondary homes or investment properties do not qualify, ensuring the loan serves its intended purpose of supporting homeowners in their main residence.

What are the costs associated with a reverse mortgage?

Reverse mortgages involve certain costs that should be considered before proceeding. Common expenses include:

  • Origination fees – the cost to set up the loan.

  • Closing costs – fees for processing and finalizing the mortgage.

  • Mortgage insurance premiums – protects the lender and ensures you receive the loan proceeds.

  • Interest charges – accrued over the life of the loan.

Understanding these costs upfront helps you make an informed decision and choose the reverse mortgage that best fits your financial needs.

bottom of page