Reverse Morgages

What Is a Reverse Mortgage?

A reverse mortgage is a loan insured by the Federal Housing Administration (FHA), which is also called a HECM. It allows you to access your home equity and turn it into cash. Homeowners choose a reverse mortgage because it allows them to remain in their homes, as long as they meet the loan terms, and provides them with funds that can supplement their retirement income.


*You cannot lose your home under normal circumstances and so long as you pay your property taxes, homeowner’s insurance, maintenance costs.


Eliminate Monthly Mortgage: Without a mortgage payment, you can free up cash to cover other important expenses.

Access Cash: The proceeds can be used however you like and are tax-free (consult your financial advisor)

Stay in Your Home: With a reverse mortgage, you can stay in the home you love while you live there.*

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How a Reverse Mortgage Loan Works

Unlike a traditional loan where the borrower makes payments to the lender, the lender makes payments to the borrower and the loan is repaid when the last borrower or eligible non-borrowing spouse passes away or leaves the house or does not comply with the loan terms.


  • The borrower/homeowner remains the owner of the home and retains title.
  • The amount you can borrow depends on your age, property value, and interest rate. The older you are, the more equity you’ll have access to.
  • The borrower/homeowner must continue to pay property taxes & homeowners insurance, and must keep the house in good repair/condition.
  • As a non-recourse loan, the borrower will never owe more than the house is worth. If the loan balance exceeds the home’s value, the Federal Housing Administration will cover the difference.
  • There are different types of reverse mortgages and the funds can be disbursed in a number of ways

Who Qualifies for a Reverse Mortgage Loan

Traditional reverse mortgages were established in 1989 to help older homeowners age in place and in their homes. The right to remain in the home is contingent on paying property taxes and homeowner’s insurance, maintaining the home, and complying with the loan terms.


Being a government-insured loan, there are several important requirements borrowers must meet to qualify.



  • You must be at least 62 years old.
  • You must own your home.
  • The home must be your primary residence.

Features and Safeguards

Today, there are important safeguards in place to ensure that the HECM reverse mortgage product can continue to help consumers for years to come.


  • You must complete reverse mortgage counseling with an independent counseling agency.


  • You must undergo a financial assessment to ensure you are able to meet the financial obligations of the loan, which includes the ability to pay your property taxes and homeowners insurance.


  • If your spouse is younger than 62, they can qualify as an eligible non-borrowing spouse and remain in the home even if you leave or pass away, so long as they continue to meet all loan obligations.*

Please feel free to contact us and we can discuss your current situation in further detail and also discuss financing options available to you.