The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration.
How a reverse mortgage can help
- No required monthly mortgage payment. You can still make payments if you'd like, but you don't have to.
- Pay off your current mortgage and free up monthly cash flow.
- Supplement retirement income for everyday living, healthcare, or travel.
- Choose how you receive funds: a lump sum, monthly payments, a line of credit, or a combination.
- You keep the title to your home.
Who's eligible
- At least one borrower must be 62 or older.
- The home must be your primary residence.
- You need enough equity in your home.
- You'll complete a short counseling session with a HUD-approved counselor. This is a standard step to make sure you understand the loan.
Your responsibilities
With a reverse mortgage, you continue to:
- Pay property taxes, homeowners insurance, and any HOA dues
- Maintain the home
- Live in the home as your primary residence
Is a reverse mortgage right for you?
It can be a wonderful tool, but it's not right for everyone. Sometimes a HELOC, a refinance, or another option fits better. We'll walk through all of your choices honestly. We also encourage you to include family members or a trusted advisor in the conversation.
What about my spouse?
If your spouse is younger than 62 or not on the loan, special rules may apply. Bring this up early so we can explain how it affects your options.
Where this is available
California, Arizona, Colorado, Florida, and Texas.
Program availability can vary by state and property. Contact us to confirm options for your home.
Frequently asked questions
Will I lose my home?
No. You keep ownership. The loan becomes due when the last borrower sells, moves out permanently, or passes away, or if property taxes, insurance, or upkeep aren't kept current.
What happens to my home when I pass away?
Your heirs can keep the home by paying off the loan, often by refinancing, or sell it and keep any remaining equity.
Can I still make payments if I want to?
Yes. Payments are optional, and making them can preserve more of your equity.
Do I need to own my home free and clear?
No. Many people use a reverse mortgage to pay off their existing mortgage.