A Reverse Mortgage (also known as an HECM, a Home Equity Conversion Mortgage) is a mortgage loan, insured by FHA and HUD, that enables homeowners over 62 to convert part of their home into tax free payments or draws without having to sell, give up the title or take on new mortgage payments.

Seniors Are Using Reverse Mortgages To:

• Create cash flow by paying off existing mortgages and debt
• Add to existing retirement income
• Plan for future retirement
• Create cash reserves for emergencies
• Pay for health care
• Pay for home improvements
• Downsize and buy smaller homes

Reverse Mortgage Qualifications:

• All homeowners must be over the age of 62
• Home must have at least 50-55% equity in home available for use
• Home must be owner occupied and the borrowers primary residence
• All mortgages and liens must be paid off with the Reverse Mortgage
• Property taxes, homeowners insurance and property maintenance are paid by the homeowner
• Reverse Mortgage homeowners are required to complete FHA/HUD  counseling for Reverse Mortgages
• Homes require a FHA appraisal by an approved licensed appraisal

Reverse Mortgage Features:

• No mortgage payments are required as long as the homeowner occupies the home.  The borrower must continue to pay taxes and insurance and otherwise comply with the loan terms.
• This loan is attached only to the primary residence and is a non-recourse loan
• Mortgage insurance provided by FHA/HUD is required on all FHA reverse mortgages
• Mortgage insurance provides protection for the homeowner and their heirs by never having to pay back more the value of the home
• The Reverse Mortgage loan balance does grow and accrues interest over time. The loan growth rate depends on how the homeowner accesses funds available and program chosen
• Loans costs will vary depending on loan program chosen