Reverse Mortgage

A reverse mortgage loan is a special loan that gives senior citizens greater financial stability through flexible payments and cash advancements. The FHA insures reverse mortgage loans, and you must be at least 62 years old to qualify. 

<p>Is a reverse mortgage right for you?</p>

Is a reverse mortgage right for you?

If you are a senior citizen who is in need of extra money to cover medical expenses or supplement your Social Security, a reverse mortgage for your current home should be considered. A reverse mortgage is a special lifetime mortgage available to senior citizens, at 62 years or older, to access part of their home equity by converting their home loan into cash. Also known as the FHA’s Home Equity Conversion Mortgage (HECM), senior homeowners are not required to make payments, but can choose to do so without a pre-payment penalty.   If there is more than one reverse mortgage borrower, the age of the youngest borrower will be used to determine the loan amount.  The higher the age, the more value that can be pulled from the home, and the lower the interest rate, the more money that can be borrowed. 



​A reverse mortgage is a good idea if you own your home outright or have paid off a considerable amount of your mortgage, but have a limited cash flow. With this mortgage option, you will only have to worry about your everyday living expenses rather than keeping a roof over your head. A reverse mortgage offers:     

  • No income or credit score requirements    
  • No monthly payments until loan maturity or termination
  • Money transferred from mortgage as untaxed credit, cash advance or cash settlement
  • The freedom to relocate and enhance retirement years 
<p>Important Information</p>

Important Information

​To be eligible for an FHA reverse mortgage, homeowners must live in and own a home, be 62 years of age or older or have a low mortgage balance that can be paid at the close of the loan using money from the reverse mortgage. Homeowners are still required to pay property taxes, utilities and hazard insurance premiums and can apply for a reverse mortgage loan if the FHA does not currently insure their home.   If the home is no longer used as a primary residence, all HECM finance charges must be repaid and any remaining equity will be transferred to heirs. HECM counseling is required before a reverse mortgage is dispersed at no charge or for a small fee. HECM counseling can be completed online or by phone at (800) 569-4287. HECM Counseling