WHAT IS A
REVERSE MORTGAGE?

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A reverse mortgage is a home-secured loan that can turn part of the equity you’ve built up in your house into funds you can use today, or a line of credit that will be there when you need it. Specifically designed for homeowners age 62+, it offers all the benefits of a traditional line of credit that you can get from a bank but with additional benefits — including a flexible repayment feature. As with any mortgage, the title to the home remains in your name, not the lender’s.¹

At a minimum, to be eligible you must be 62 years of age or older; you must have a certain percentage of equity in the home; and the house must be your principal residence. For more information, visit our eligibility page.

A reverse mortgage lets you stay in control

CUSTOMIZABLE

You choose how to receive your funds, either as a lump sum, line of credit, monthly advances or any combination of these.

FLEXIBLE

With the flexible payment option, you decide how much or how little to pay each month toward principal and interest. Or you can choose to make no monthly loan payment at all.¹

CONTROLLABLE

With no pre-defined loan maturity date, you can pay down the loan at any time, or defer repayment.

How much can you receive from a reverse mortgage?

The amount that is available generally depends on four factors: your age, the current interest rate, the appraised value of the home, and government-imposed lending limits.

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Reverse mortgages have some powerful advantages

A reverse mortgage has certain advantages over other types of home equity-based loans. Since a HECM reverse mortgage is FHA-insured,* if the loan balance ever exceeds the value of your home you and your heirs are not responsible to pay the excess. As long as you satisfy your loan obligations, which include maintaining your home, paying your real estate taxes, property insurance and any homeowners association (HOA) fees.

  • Establish a rainy day fund
  • Supplement your income
  • Refinance an existing mortgage
  • Repay a home equity loan
  • Pay off high-interest rate credit cards
  • Be more financially prepared
  • Pay for healthcare
  • Cover in-home care costs
  • Make or pay off a major purchase
  • Home improvements
  • Home modifications
  • Buy a home

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DIANE S.
Benicia, CA

I just so happen to have a reverse mortgage. The best thing I ever did in my life.

JAMES J.
Philadelphia, PA

You get to stay in the house and that's a really good thing. Especially since you still own the house.¹

RICK M.
Fairport, NY

It's a mortgage, or it's a line of credit, but with flexibility. I haven't heard yet any reason why I shouldn't pick this product.

¹ As with any mortgage, borrower must meet their loan obligations, keeping current with property taxes, homeowners insurance, maintenance and any homeowners association fees.

* This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.