Reverse Mortgages for Homeowners 62 and Older
Your home, your next chapter.
My parents chose a reverse mortgage in retirement, and it gave them options that let them keep living the life they loved. Watching what it did for them, I came to see how much good this loan can do, and why it raises so many questions for families considering it. That's exactly where our conversation begins, with time to talk through all of those questions until you feel sure about what's right for you.
No Monthly Mortgage Payment
Breathe a little easier.
For many of the homeowners I meet, the biggest relief is no longer having a mortgage payment due every month. A reverse mortgage can pay off the loan you have today, freeing up that money for the life you want to live.
Reverse Mortgages for Aging in Place
Stay in the home you love.
Most people I talk with want to stay right where they are, close to their neighbors, their routines, and the life they've built. A reverse mortgage can help make that possible as needs change over the years.
Reverse Mortgage Line of Credit
A reserve that grows with you.
A HECM line of credit works differently from most. The portion you don't use grows over time, so more can be available later in retirement. Many people open one simply to have it in place, then decide later how and when to use it.
Reverse Mortgages and Your Family
Bring the people you trust.
Many clients invite a son, daughter, or financial advisor to join our conversations. They're always welcome, and their questions are just as important as yours.
Explore the Simple Guide to Reverse Mortgages →
“Julie has offered me the kind of service one could only expect from caring family.”
Lynn
Frequently Asked Questions
Can I get a reverse mortgage if I still have a mortgage?
Yes. In fact, paying off an existing mortgage is one of the most common reasons homeowners choose a reverse mortgage. The reverse mortgage pays off the current loan first, as long as there's enough equity to do so, and any remaining funds become available to you. How much is left depends on your home's value, your age, and your current balance.
How does a reverse mortgage line of credit grow?
With a HECM line of credit, the unused portion grows over time at the same rate as the loan's interest rate. That means the longer it sits untouched, the more becomes available.
Can I stay in my home for the rest of my life with a reverse mortgage?
You can stay in your home as long as it's your primary residence and you keep up with property taxes, insurance, and upkeep. The loan is typically repaid when the last borrower moves out or passes away.
A Home Equity Conversion Mortgage (HECM) is the formal name of the government-backed loan that many commonly refer to as the 'reverse mortgage' loan. The Home Equity Conversion Mortgage is backed by H.U.D. (The Department of Housing & Urban Development) and may help qualified homeowners 62 and older enhance their cash flow during retirement. There may also be private jumbo reverse mortgages¹ available in your area for higher-valued properties (usually over $1,000,000 in value) which are not insured by FHA. Jumbo reverse mortgage loans are unique and their features and requirements vary by the lender offering them.
We Help Seniors with HECM Loans
How do I Qualify for a Reverse Mortgage Loan?
To become eligible for a reverse mortgage, you must be at least 62 years old and own your home. You must have enough equity in the house to pay off any outstanding balances, and your home must be occupied as your principal residence. Minimal income and credit standards must also be met. Imagine living in your home without a traditional monthly mortgage payment², or instead enjoying monthly loan proceeds from the years you’ve invested in your home. A reverse mortgage is a unique mortgage designed for homeowners 62 and older. You may enjoy access to part of the value of your home and the freedom and comfort of the home you’ve known for so many years. It’s your home, now you can put it to work for you. Reverse mortgage borrowers retain ownership and title to their home². It’s yours just as it was before, but now you may benefit from the equity that’s been building in your home for years. In addition, HECM (Home Equity Conversion Mortgage) reverse mortgage loans give you peace of mind since it is insured by the Federal Housing Administration (FHA); and your home and property are the only assets that secure the loan. In order to retain the home when the reverse mortgage becomes due, the heirs may choose to keep the home by paying off the current outstanding loan balance or 95% of the home's appraised value, less customary closing costs and real estate commissions. After you get a reverse mortgage on your primary residence, repayment is not due until the home is sold, the last borrower passes away or permanently leaves the home, or you do not comply with the loan terms². Borrowers also must keep the home in good condition, pay property taxes and keep homeowner’s insurance coverage to avoid the loan becoming due and payable. As a protection, all those seeking a reverse mortgage are required to obtain counseling (from an independent HUD-approved third-party counselor) prior to incurring any costs associated with the loan (other than the counseling fee). While proceeds from a reverse mortgage are not subject to personal income taxation, borrowers should seek tax advice on how proceeds may affect government needs-based programs such as Medicaid and Medi-Cal.³
Reverse Mortgage Facts
- A Reverse mortgage is a specialized loan for homeowners 62 and older.
- A reverse mortgage allows older homeowners to access a portion of the value of their home.
- Borrowers maintain title and ownership of their home.²
- Proceeds from a reverse mortgage are not subject to personal income taxation, but borrowers should seek tax advice on how proceeds may affect government needs-based programs such as Medicaid and Medi-Cal.³
- It is not a government grant, but a loan that is repaid in the future when the home is sold or the last borrower dies or permanently leaves their residence.
- A reverse mortgage is eligible only for the borrower’s primary or principal residence.
- HUD counseling (from an independent HUD-approved third-party counselor) is required prior to the borrower incurring any costs associated with the loan.
- A reverse mortgage loan is secured by a mortgage on the home and failure to comply with loan terms could result in foreclosure.
¹For the loans presented we are a Mortgage Broker only, not a mortgage lender or mortgage correspondent lender. We will arrange loans with third-party providers but do not fund the loans directly. We will not make mortgage loan commitments for these loans..
²There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower is still responsible for paying property taxes, homeowner’s insurance and maintaining the property to HUD standards. Failure to do so could make the loan due and payable. Credit is subject to age, income standards, credit history, and property qualifications. Loan rates, fees, terms, and conditions are not available in all states and subject to change.
³Borrowers should seek professional tax advice regarding reverse mortgage proceeds.
*Borrowers must continue to pay property taxes, homeowner’s insurance, and home maintenance costs.
