Receive a single distribution at closing (subject to program limits). Great for paying off an existing mortgage, large medical bills, or other big-ticket expenses.
What Is A Reverse Mortgage?
A reverse mortgage is a home loan designed for homeowners age 62 or older that allows you to convert a portion of your home’s equity into cash — without making monthly mortgage payments.
Instead of you paying the lender each month, the lender pays you (or sets up a line of credit), and the loan is repaid later when you sell the home, move out, or the home is no longer your primary residence.
The most common type is a
Home Equity Conversion Mortgage (HECM), which is insured by the FHA and comes with specific protections and counseling requirements.
Who it's for
Who Might Consider a Reverse Mortgage?
A reverse mortgage isn’t right for everyone, but it can be a helpful option for certain homeowners:
Homeowners age 62+ who want to stay put
You’d like to age in place and use your home’s equity to help cover expenses without selling or moving.
“House rich, cash light” retirees
Most of your wealth is tied up in your home, and you’d like extra income for living expenses, medical costs, travel, or emergencies.
Owners with little or no mortgage balance
You’ve paid down most or all of your existing mortgage and want to eliminate payments while unlocking part of your equity.
Retirees who want a flexible safety net
You like the idea of a line of credit you can tap only when needed, as part of a broader retirement and income strategy.
How it works
How a Reverse Mortgage Works
With a reverse mortgage, you keep ownership of your home while using your equity to increase your financial flexibility. Here’s what the process looks like, step by step:
1
Initial Conversation & Education
We discuss your goals, answer questions, and determine if a reverse mortgage aligns with your long-term financial plans.
2
HUD-Approved Counseling
Before applying, you complete a session with a HUD-approved counselor who reviews benefits, costs, and alternatives so you can make an informed decision.
3
Application & Appraisal
You choose a loan option, complete an application, and we order an appraisal to determine your home’s current value.
4
Underwriting & Closing
We review documents, finalize the loan details, and once approved, you close and choose how you'd like to receive your funds.
Payout options
How You Can Receive Your Reverse Mortgage Funds
Flexible by design
One of the biggest advantages of a reverse mortgage is flexibility. You can structure your funds for stability, flexibility, or a blend of both—depending on what feels best for your retirement plan.
Turn a portion of your home’s equity into predictable, tax-free monthly payments for a set period—or as long as you live in the home and meet program requirements.
Use funds only when you need them. With certain reverse mortgage programs, the unused portion of your credit line can grow over time, giving you more available funds later.
Blend a smaller lump sum, monthly payments, and a line of credit. This approach gives you immediate breathing room plus a flexible safety net for the future.
Potential benefits
Why Some Homeowners Choose a Reverse Mortgage
For the right fit
When used thoughtfully and as part of a broader retirement strategy, a reverse mortgage can provide flexibility and breathing room in your financial life.
Stay in the Home You Love
Age in place
Use your home’s equity to support your lifestyle while continuing to live in the place that feels most like home to you.
No Required Monthly Mortgage Payments
Cash flow relief
As long as you live in the home and meet program requirements (taxes, insurance, and upkeep), you aren’t required to make principal and interest payments.
Flexible Access to Your Equity
Your way
Take funds as a lump sum, monthly payments, a line of credit, or a combination—so your reverse mortgage supports how you actually live and spend.
Non-Recourse Loan Protection
HECM safeguard
With FHA-insured HECM loans, you or your heirs will never owe more than the home’s value when the loan is repaid, even if market values decline (subject to program rules).
Important considerations
What to Understand Before Choosing a Reverse Mortgage
Look before you leap
A reverse mortgage can be helpful in the right situation, but it’s not a fit for everyone. It’s important to understand the tradeoffs and obligations before you move forward.
You Still Have Ongoing Responsibilities
Taxes • Insurance • Maintenance
You must continue to pay property taxes, homeowner’s insurance, and maintain the home. Falling behind on these obligations can put the loan—and your ability to stay in the home—at risk.
Your Loan Balance Grows Over Time
Compounding interest
Because you’re not making monthly principal and interest payments, interest and fees are added to the balance. That means the amount owed increases over time, which reduces your remaining equity.
Impact on Heirs and Inheritance
Family conversations
When the loan becomes due, your heirs can sell the home, refinance, or pay off the balance to keep the property. It’s wise to talk with family ahead of time so expectations are clear.
Fees, Closing Costs, and Complexity
Know the details
Reverse mortgages can have higher upfront costs and more moving parts than a traditional mortgage. That’s why independent HUD-approved counseling is required before you can move forward.
This page is for educational purposes only and is not financial or legal advice. Before choosing a reverse
mortgage, consider speaking with a financial planner, tax professional, and HUD-approved counselor to
explore how it fits into your overall retirement strategy.
Checklist
Is a Reverse Mortgage Right for Me?
Quick gut check
This simple checklist can help you decide whether it’s worth exploring a reverse mortgage in more detail. If you see yourself more in the left column than the right, it may be time for a conversation.
✅
Might be a good fit if…
You relate to several of these
- ✓You’re 62 or older and plan to stay in your home for the foreseeable future.
- ✓Most of your wealth is in your home, and you’d like extra cash flow in retirement.
- ✓You’re comfortable keeping up with property taxes, insurance, and basic maintenance.
- ✓You want options for how you receive funds—lump sum, monthly income, or a line of credit.
- ✓You’re open to including your family or advisor in the decision-making process.
⚠️
Might not be a fit if…
These feel more true instead
- !You’re planning to move, downsize, or sell your home in the near future.
- !Keeping the maximum possible equity in the home for your heirs is your top priority.
- !You’re unsure you can reliably pay property taxes, homeowner’s insurance, and upkeep.
- !You’re uncomfortable with a loan balance that grows over time instead of shrinking.
- !You haven’t yet talked with a financial planner, tax professional, or trusted advisor.
This checklist is a starting point—not a final answer. If you’re checking more boxes on the “good fit”
side and fewer on the “might not be a fit” side, it may be worth scheduling a conversation to see whether
a reverse mortgage aligns with your full financial picture.
Next step
Want to talk through your options and checklist together?
