Reverse Mortgages

A financial tool for homeowners aged 62 and older to convert part of their home equity into cash without having to sell their home or make monthly mortgage payments.

How a Reverse Mortgage Works

Unlike a traditional mortgage where you make payments to the lender, a reverse mortgage pays you. The loan is repaid only when the borrower sells the home, moves out permanently, or passes away. Borrowers remain responsible for property taxes, insurance, and home maintenance.

Benefits for Seniors

• Eliminates existing monthly mortgage payments.
• Provides tax-free cash flow to supplement retirement income.
• Funds can be used for medical expenses, home modifications, or daily living.
• You retain ownership and title to your home.
• Flexible payout options: lump sum, monthly payments, or a line of credit.

Who is Eligible?

• The primary borrower must be at least 62 years old.
• You must own the home outright or have a small mortgage balance that can be paid off by the reverse mortgage proceeds.
• The property must be your primary residence.
• You must have the financial resources to continue paying property taxes, homeowners insurance, and HOA fees.

What is the Process?

1. Counseling: You must complete an independent, HUD-approved counseling session to ensure you fully understand the program.
2. Application & Appraisal: We process your application and order an FHA appraisal to determine the home's value.
3. Financial Assessment: We verify your income and credit history to ensure you can maintain the property taxes and insurance.
4. Underwriting & Closing: The loan is approved, and you choose how to receive your funds (lump sum, monthly payments, or line of credit).

Is Mortgage Insurance Required?

Yes. Most reverse mortgages are Home Equity Conversion Mortgages (HECMs) backed by the FHA. They require an upfront mortgage insurance premium (usually 2% of the home's value) and an annual premium (0.5% of the outstanding loan balance). This insurance guarantees you will never owe more than the home is worth and ensures you receive your payments even if the lender goes out of business.