Loan Program
Reverse Mortgage Program
What Is a Reverse Mortgage?
A reverse mortgage is a type of home loan that allows eligible homeowners to access a portion of their home’s equity.
Instead of making a traditional mortgage payment to the lender, eligible borrowers may receive funds from the lender through an available payment option. The loan generally becomes due when the borrower sells the home, permanently moves out, or passes away, subject to the loan terms and applicable requirements.
How It Works
1. Evaluate Your Home & Financial Goals
We’ll review your home, existing mortgage, and overall objectives.
We’ll review your home, existing mortgage, and overall objectives.
2. Determine Your Eligibility
Age, home equity, property type, occupancy, and financial considerations can affect eligibility.
3. Choose Your Payment Option
Depending on the reverse mortgage, available proceeds may be received as a lump sum, monthly payments, a line of credit, or a combination.
4. Stay in Your Home
As long as you meet the loan’s requirements, including living in the home as your principal residence and keeping up with required property charges, you can continue living in your home.
Potential Benefits
- Access Home Equity — Use a portion of your home’s equity without selling your home.
- Stay in Your Home — Continue living in your primary residence while accessing available equity.
- Flexible Proceeds — Depending on the program, funds may be available through different payment options.
- Supplement Retirement Cash Flow — Proceeds may provide an additional source of funds for eligible homeowners.
- No Traditional Monthly Mortgage Payment — Eligible borrowers generally do not make the same type of monthly principal-and-interest mortgage payment associated with a traditional mortgage.
Who May Qualify?
For many reverse mortgage programs, borrowers must generally:
- Be 62 years of age or older
- Own and occupy the home as their principal residence
- Have sufficient home equity
- Meet applicable financial and property requirements
- Complete required counseling for applicable reverse mortgage programs
Specific eligibility requirements depend on the type of reverse mortgage and lender.
Reverse Mortgage vs. Traditional Refinance
What’s the Difference?
Reverse Mortgage
Eligible homeowners can access home equity without making traditional monthly principal-and-interest mortgage payments, subject to the loan’s terms and ongoing obligations.
A reverse mortgage can be useful for some homeowners, but it isn’t right for everyone.
Traditional Refinance
You borrow money to purchase or refinance a home and make monthly principal-and-interest payments.
Frequently asked questions
What age do you have to be for a reverse mortgage?
For many federally insured Home Equity Conversion Mortgages (HECMs), the youngest borrower must generally be at least 62. Other reverse mortgage products may have different requirements.
Do I still own my home with a reverse mortgage?
Generally, yes. A reverse mortgage does not mean you give ownership of your home to the lender. You remain responsible for meeting the loan’s requirements.
Do I have to make monthly mortgage payments?
Eligible borrowers generally don’t make traditional monthly principal-and-interest payments. However, they remain responsible for property taxes, insurance, maintenance, and other applicable obligations.
How can I receive my reverse mortgage funds?
Depending on the product, proceeds may be available as a lump sum, monthly payments, a line of credit, or a combination of options.
When does a reverse mortgage need to be repaid?
The loan generally becomes due when the borrower sells the home, permanently moves out, or passes away, subject to the loan terms and applicable requirements.
