A reverse mortgage is a non-recourse home loan that enables seniors to convert a portion of their equity into tax-free* income. The borrower remains in the comfort of their own home without having to sell, give up title, or make monthly payments. The loan becomes due when the borrower permanently vacates the property.**

*always consult your tax advisor
**Homeowner must continue to pay insurance, taxes, and basic maintenance of home to keep loan in good standing.

The amount you can borrow depends on several factors, including your age, the type of product you choose, interest rates, the appraised value of your home, the amount of equity you have in your home, and the FHA’s lending limits in your county of residence.

Reverse mortgages offer a number of payout options. Depending on the type of product you choose, proceeds can be taken as a lump-sum, monthly payment, a line of credit from which you can draw upon, or any combination of the three.

No. You retain full homeownership and can sell the home at anytime; the reverse mortgage lender is extending a loan to you. Your only obligation is to continue to pay property taxes, insurance, and proper maintenance of the home. Once you permanently vacate the property, the loan then becomes due.

No. Because you don’t have to make monthly repayments, there are no income requirements.

One of the biggest advantages of a reverse mortgage over that of a HELOC is there are no monthly repayments because you’re drawing upon your home equity.

No. And if you outlive the loan, you don’t have to repay it either. The loan is not due as long as you or another borrower continues to live in your house as your primary residence. The loan becomes due when you permanently vacate the property because of relocation or death.

You may be able to obtain a reverse mortgage with minimal upfront costs. While closing costs vary based upon the type and size of the loan, you can structure your loan with these costs included in the total loan amount; they’re simply added to the principal and paid with interest when the loan becomes due.

Yes. Refinancing is a sensible option if your home increases in value, interest rates drop, or if HUD increases your county lending limit.

No. The borrower is only responsible for paying property taxes and insurance, and providing proper maintenance of their home. The loan becomes due when the borrower permanently vacates the premises.

You may qualify for a reverse mortgage even if you still owe on your first mortgage. A portion of your reverse mortgage will first be used to pay-off any existing liens.

The proceeds from your reverse mortgage may be used for almost any purpose. In addition to simply providing supplemental income, here are a few ideas on using your reverse mortgage:

• Healthcare
• Medication
• Treatment
• Family caregiver expenses
• In-home care
• Long-term care insurance
• Home improvements
• Travel

There are several types of reverse mortgage products, so it’s always important to consult with your reverse mortgage advisor. Federally-insured reverse mortgages, known as Home Equity Conversion Mortgages (HECMs), are backed by the U.S. Department of Housing and Urban Development (HUD). You may also be offered a Fixed-rate loan, also Government-insured, for borrowers who want one rate for the life of the loan.

It means the product has the security of being backed by the federal government and you will never owe more than your house is worth. The HECM product was created by senior advocates for America’s seniors, and the Federal Housing Authority (FHA) has taken great strides to insure reverse mortgages and their payouts. There also are many safeguards in place to guarantee the borrower’s protection so that seniors and their families can be confident that the financing against their home is secure. To be certain you understand all aspects of a reverse mortgage, the Government also requires an independent, unbiased counseling session with a U.S. Housing and Urban Development (HUD) approved counselor. This can be done in person or over the phone. (Some states require face-to-face.)