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Older couple smiling and hugging after filing for a reverse mortgage.

What is a Reverse Mortgage?

A Reverse Mortgage is just like any other type of mortgage. There is one exception, however: you don’t have to make a principal & interest payment (property tax, insurance payments and applicable HOA fees are still necessary). See, a Reverse Mortgage serves as a loan for a senior-aged homeowner by using part of the home equity as collateral. What this means is that the loan comes due when the borrower moves out permanently, sells the home, passes away, or does not fulfill their financial obligations. When the homeowner moves or passes, the proceeds of the home sale go to the lender to repay the mortgage balance. Any proceeds beyond the loan balance go to the homeowner (or the estate if passed). In some instances, heirs may elect to pay off the loan so they can retain the family home. In the event the homeowner does not fulfill their financial obligations in accordance to program guidelines, they are still at risk of foreclosure proceedings.

Who is eligible for a Reverse Mortgage?

In order to be eligible for a Reverse Mortgage, the applicant must be 62 years or older, own the property, and occupy it as their primary residence. In addition, they must maintain the home with needed repairs, property taxes and insurance. Also, the property does need to meet certain FHA property standards. Finally, the applicant must participate in a reverse mortgage counseling session (this can be done over the phone or in-person.)

Features

Who is eligible for a Reverse Mortgage?

In order to be eligible for a Reverse Mortgage, the applicant must be 62 years or older, own the property, and occupy it as their primary residence. In addition, they must maintain the home with needed repairs, property taxes and insurance. Also, the property does need to meet certain FHA property standards. Finally, the applicant must participate in a reverse mortgage counseling session (this can be done over the phone or in-person.)

What other loan types are available?

When it comes to loans, you have many more options than you think. Find out about some here:

Possibility starts here.
Find a loan officer near you to get started.

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