A reverse mortgage lets eligible homeowners convert part of their home equity into cash with no required monthly principal-and-interest payments, while continuing to own and live in their home. Taxes, insurance and upkeep still apply.
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), insured by the FHA. Instead of you paying the lender each month, the loan balance grows over time and is typically repaid when you sell, move out permanently or pass away. You keep the title to your home.
Payments are optional while you live in the home.
Lump sum, monthly payments, a line of credit or a mix.
You keep ownership and title.
You or your heirs will never owe more than the home's value.
Choose a topic to jump to the details.
There is no credit score check. Qualifying is based on your age and the equity in your home: for a HECM, at least one borrower must be 62 or older, the home must be your primary residence, and you need substantial equity. A HUD-approved counseling session is required before you apply.
Back to topicsYou must continue to pay property taxes, homeowners insurance and any HOA dues, and keep the home in good repair. Missing these can put the loan in default.
Back to topicsWhen the loan comes due, heirs can sell the home and keep any remaining equity, or pay off the loan to keep the home. They never owe more than the home is worth.
Back to topicsSeniors can also use a reverse mortgage to buy a new home, often downsizing without taking on a monthly principal-and-interest payment.
Buyers age 62 and older can use a reverse mortgage to buy a new home, often downsizing or moving closer to family, with a large down payment and no required monthly principal-and-interest payment afterward.
Back to topicsBefore applying for a Home Equity Conversion Mortgage (HECM), you must meet with an independent HUD-approved counselor. The session explains costs, alternatives and your responsibilities, and family members are welcome to attend.
Back to topicsTell us about your goals. A loan officer will confirm whether this program is the right fit.
We fill out the application with you and send a secure list of documents to upload.
We handle appraisal, underwriting and title, keeping you updated by phone, text or email.
Every file is different. Your loan officer will send an exact list.
Have a question that is not answered here? Ask a loan officer.
No. You keep title and ownership.
Only if you fail to meet loan obligations such as taxes, insurance and occupancy.
Generally no, since they are loan funds. Consult your tax advisor.
Eligible non-borrowing spouses may have protections to stay in the home.
When the last borrower sells, moves out permanently or passes away. Heirs can pay off the loan, refinance or sell the home.
Talk to a loan officer
Tell us a little about your plans. A licensed loan officer will call you, usually the same business day.
Prefer to call? (800) 592-8882