What Is a Reverse Mortgage and Is It Right for You?

Many older adults have built significant wealth through homeownership but may live on limited retirement income. A reverse mortgage is an option that allows eligible homeowners to turn some of their home equity into cash while continuing to live in their homes.

A reverse mortgage is a special type of loan for homeowners age 62 and older that allows them to access a portion of their home's equity without making required monthly mortgage payments. The loan is typically repaid when the homeowner sells the property, permanently moves out, or passes away. 

Traditional Mortgage

• You pay the lender each month.
• The loan balance decreases over time.

Reverse Mortgage

• You receive funds from the lender.
• The loan balance grows over time.
• No required monthly mortgage payments.

You may qualify if you:

• Are 62 years of age or older
• Own your home or have substantial equity
• Live in the home as your primary residence
• Keep property taxes and homeowners insurance current
• Maintain the property in good condition

The most common reverse mortgage available today.

• FHA-insured
• Federally regulated
• Includes important consumer protections

• Offered through private lenders
• Often used for higher-value homes
• Not FHA-insured

• Offered by some nonprofit organizations or local governments
• Designed for specific expenses such as home repairs or property taxes.

You may be able to receive funds as:

• A lump sum
• Monthly payments
• A line of credit
• A combination of these options

Fact: You remain the owner of your home and keep title to the property. 

Fact: You may continue living in your home as long as you meet the loan requirements.

Have questions about reverse mortgages?  Contact one of our preferred lenders or other real estate-related professionals to learn whether a reverse mortgage may fit your retirement goals