Use home equity with flexibility
A Home Equity Conversion Mortgage (HECM), the most common reverse mortgage, is designed for eligible homeowners age 62 or older. Eligibility also depends on the home, financial assessment and required counseling. Other reverse mortgage products may have different age and program requirements.
You keep title to your home and retain any equity remaining after the loan and selling costs are paid. Interest and fees generally increase the loan balance over time, which can reduce the equity available to you or your heirs.
No monthly principal and interest mortgage payment is required while you meet the loan obligations. You must continue paying property taxes, homeowners insurance and applicable association charges, maintain the property and meet primary-residence requirements.
Depending on the HECM loan type, proceeds may be available as a lump sum, a line of credit, monthly advances or a combination. Available funds and disbursement limits depend on your age, home value, interest rate and program rules.
Protection for you and your heirs
HECMs are non-recourse loans: your heirs are not personally responsible for a shortfall beyond the home’s value. The loan still becomes due after the last borrower dies, subject to protections for an eligible non-borrowing spouse.
Heirs can sell the home to resolve the loan and keep any remaining equity. To keep the home, they generally must repay the lesser of the loan balance or 95% of its appraised value. They may also arrange to surrender the home; they do not have to use their own money to cover a deficiency.
What to know
A reverse mortgage can allow eligible homeowners to access home equity without required monthly principal and interest payments. You remain responsible for property taxes, insurance, maintenance and other loan obligations. Counseling and eligibility requirements apply.
Start with a conversation
Tell me where the property is, how you plan to use it and what you want the loan to accomplish. I can help you understand which details lenders will review and compare available paths.
What is a reverse mortgage?
A reverse mortgage lets eligible homeowners convert part of their home equity into loan proceeds. The balance generally grows over time and becomes due after a maturity event; property charges and upkeep remain the homeowner’s responsibility.