This special type of home loan lets homeowners convert a portion of his or her home equity into cash, providing for a more secure financial future. They may do this without selling the home, giving up title, or taking on a monthly mortgage payment*. The money from the reverse mortgage provides seniors with the additional financial security they need to fully enjoy their retirement years.

Quality of Life

  • A reverse mortgage allows them to continue living in their home and maintain community ties and support.
  • Remain independent and retain ownership of their home.
  • The Loan provides funds to help pay for in-home care.
  • The reverse mortgage eliminates their monthly mortgage payments for as long as they live in their home. The borrower must continue to pay their real estate taxes, insurance, and maintenance*.

HECM Reverse Mortgage Facts

  • Over 900,000 Americans have already used a reverse mortgage to fit their retirement needs (Source: HUD, through FY 2015).
  • HECM reverse mortgages are government-insured loans for those aged 62 or older, allowing borrowers to retain home ownership and use home equity to fund their retirement.
  • There are no required monthly mortgage payments as long as the borrower(s) reside at the property as their primary residence*.

Government Assistance

  • Federal benefits such as Social Security and Medicare are generally not affected by a reverse mortgage. For information on State benefits, such as Medicaid, please consult the appropriate government agencies.

Repayment

  • Repayment is only required when all borrowers no longer reside at the property as their primary residence or the terms of the loan agreement are not met.
  • You may choose to sell or keep the home upon repayment.
  • If you or the estate would like to keep the home, they can either pay off the reverse mortgage principal plus accrued interest, or take out a new traditional mortgage.
  • If the home is sold, any remaining equity after repayment goes to the borrower or the borrower’s estate.

*You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.