What is a Reverse Mortgage?

A reverse mortgage is a type of home loan where homeowners (62 years or older) can turn existing home equity into cash.

Types of Reverse Mortgage

Home Equity Conversion Mortgage (HECM)

Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage that is managed by the U.S. Department of Housing and Urban Development and issued by a mortgage lender. Instead of being a government loan, it will also be insured by the Federal Housing Administration (FHA).

Proprietary Reverse Mortgage

Proprietary reverse mortgages allow senior homeowners to access their equity through a privately insured company. If your current home has a high value, you may be entitled to a larger reverse mortgage. Essentially, this means that any home with a higher appraised value and a small mortgage may qualify for additional funds.

Single-purpose Reverse Mortgage

Single-purpose reverse mortgages are less expensive than any other reverse loan and can be available for those with low or moderate income. Senior homeowners will be able to use these loans for one purpose, but it must be specified by the lender. Appropriate uses of this loan can be home repairs or property taxes.

Why choose a Reverse Mortgage? 

● For homeowners over the age of 62, reverse mortgage loans offer a more comfortable retirement

● You are able to live in your home and still have ownership of its title.

● Reverse mortgage loans can be used toward existing mortgage on your home

● You will not have to pay monthly mortgage payments as long as you remain on the property and pay off property taxes, home insurance and maintenance.

● Anything from the Federal Housing Administration (FHA) Mortgage Insurance Premium (MIP) such as closing costs or recurring fees can be financed.

● Once you pay off the loan, any remaining equity will be yours or can be transferred to family members