Line of credit
Access funds as you need them. Unused funds may grow over time under HECM terms.
Reverse mortgage basics
How a reverse mortgage works
A reverse mortgage lets eligible homeowners borrow against a portion of their home equity—without making required monthly principal-and-interest mortgage payments.
The balance generally grows over time as funds are advanced and interest accrues, instead of declining like a traditional loan.
What determines available proceeds?
- Age of youngest borrower
- Current interest rates
- Appraised home value
- Existing mortgage and required payoffs
- Financial assessment and property eligibility
Access equity without selling your home
The most common reverse mortgage is the FHA-insured Home Equity Conversion Mortgage (HECM). It is designed for eligible homeowners age 62+ who occupy their home as their principal residence.
You stay in your home and can choose from permitted methods to receive your proceeds.
Three ways to receive your proceeds
Monthly advances
Receive steady permitted advances for budgeting and peace of mind.
Upfront proceeds
Receive a permitted lump sum for larger expenses or needs.
What happens over time?
Today — Your loan closes
You receive your proceeds and remain the owner of your home.
Ongoing — You remain responsible for the home
You continue to pay property taxes, insurance and maintenance.
Later — The loan becomes due and payable
This typically occurs when you permanently leave or sell the home, or pass away.
Resolution — The balance is repaid
The home can be sold and the loan repaid; remaining equity generally goes to you or your heirs.
Costs may include
- Origination and third-party closing costs
- FHA mortgage insurance
- Interest on the outstanding balance
- Possible servicing charges
- Ongoing property taxes and insurance
Costs matter—and so do alternatives.
A responsible review should compare the reverse mortgage with other choices—such as downsizing, a home equity loan, a HELOC, refinancing, selling, or other retirement resources—to understand what’s right for you.
Independent HUD-approved counseling is required before an FHA-insured HECM can close to ensure you understand your options, costs, and obligations.
Let’s talk about your situation.
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