Reverse Mortgages
Turn your home's equity into your financial freedom—enjoy your golden years with peace of mind.
What is a Reverse Mortgage?
Reverse Mortgage (HECM): Convert Home Equity Into CashA reverse mortgage, or Home Equity Conversion Mortgage (HECM), is a type of home loan available to homeowners 62 or older who have considerable equity (usually at least 50%) in their home. This financial tool can benefit people who need additional cash flow for other expenses, as the value of their home’s equity can be converted to cash, eliminating monthly mortgage payments. Borrowers use the equity in their home as security for the loan, and can receive funds as monthly payments, a line of credit, or in a lump sum. This is called a “reverse” mortgage, because in contrast to a traditional mortgage, the lender makes the payments to the borrower.
Reverse Mortgage Requirements
Age Minimum of 62
You must be at least 62 to qualify for a reverse mortgage.
Only for Primary Residence
You can only get a reverse mortgage on your primary residence, not a second residence or vacation home.
Good Financial Standing
You can't owe federal debt, such as student loans or income tax.
Benefits of a Reverse Mortgage Purchase
1. Buy More Home with the Same Money
- Traditional mortgage: If you have $400,000 cash, you can only buy a $400,000 home (unless you want monthly mortgage payments).
- With a reverse mortgage purchase: That same $400,000 down payment could allow you to buy a $600,000–$700,000 home without ever making a monthly mortgage payment.
- This means you can live in a higher-value home, in a better neighborhood, or closer to family, without tying up every dollar in cash.
2. No Monthly Mortgage Payments — Ever
- You still own the home, but unlike a traditional loan, you’re not obligated to make monthly principal and interest payments.
- The loan is repaid when you sell the home, move out, or pass away.
- This frees up monthly cash flow for travel, healthcare, hobbies, or simply peace of mind.
3. Preserve Your Retirement Assets
- Instead of using your entire nest egg to buy a home outright, you put down a portion (like the $400,000) and keep the rest of your savings working for you in investments, emergency funds, or retirement income.
- This gives you more financial flexibility and protection against inflation.
4. Age in the Home You Truly Want
- Many retirees feel forced to “settle” for a smaller or less desirable home to avoid mortgage payments.
- A reverse mortgage purchase allows you to buy your forever home — single-story, near family, in a golf community, or in a safer neighborhood — while still keeping your retirement lifestyle intact.
5. Built-In Safety Features
- Reverse mortgages are non-recourse loans, meaning you (or your heirs) can never owe more than the home is worth when it’s sold.
- FHA insurance protects you and your estate from market downturns.
- You retain the title — the home is yours, not the bank’s.
6. Eliminate Housing Costs in Retirement
- By removing monthly mortgage payments, your only housing costs are taxes, insurance, HOA dues, and maintenance.
- That’s often much less than rent or a traditional mortgage, making budgeting in retirement much simpler.
7. Keeps More Options Open for the Future
- If you decide later to sell, any equity left after repaying the reverse mortgage goes back to you or your heirs.
- If you never sell, you’ve maximized your comfort and lifestyle while minimizing financial stress.
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