Reverse Mortgage

For those who have listened to the radio a lot within the last few years, the term “Reverse Mortgage” has been thrown around a lot. The question that seems to be on everyone’s mind is, “What exactly is it?”

Despite the name, this isn’t telling a bank that they now owe you money for your home. In fact, there isn’t even a credit requirement for it. But it can help you if you are looking to improve your home, or even looking for some extra money for retirement.

What Is A Reverse Mortgage?

It should be noted that a Reverse Mortgage is still a loan, but it works a bit differently than a typical mortgage. 

First, this is a loan that is geared toward current homeowners 62 or older. Typically older homeowners have lived in their home for some time and have built up quite a bit of equity. Another major difference is that this type of loan doesn’t typically require any monthly payments.

Instead, the money given is due either when the person who got the loan either dies, sells the home, or moves out. This loan also can’t be more than what the home is currently worth, per federal law. 

How Does A Reverse Mortgage Work?

Once a home has gathered enough equity, and a Reverse Mortgage is approved, you can choose how you receive the money from the lender. And you can choose the type of Reverse Mortgage you want to get. You can either get the money is a lump sum, a monthly payment, or an additional line of credit.

Requirements For A Reverse Mortgage

There are a few things to keep in mind before applying for a Reverse Mortgage.

Property Type

A Reverse Mortgage can be used on a house, condo, townhouse, or manufactured home built after 1976. There are other restrictions based on the county you live in.


Currently, no one under the age of 62 can apply for a Reverse Mortgage.

There are many things to consider when thinking about getting a Reverse Mortgage. If you have additional questions on whether this loan is right for you, or if you want to get started, contact us today! 

Frequently asked Questions

How does a HECM work?

The amount you receive is based on current interest rates, the age of the youngest borrower and the lesser of the appraised value of your home, sale price or the maximum lending limit. The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. In general, the older you are, the more equity you have in your home and the lower your mortgage loan balance, the more money you can expect from a HECM loan.

How do we receive the money?

We offer fixed and adjustable rate HECM options. Either option can be used to access equity on a home you already own or to purchase a new home. If you have an existing lien on the property, it must be paid off as part of the HECM transaction. Both options eliminate monthly mortgage payments and do not require repayment as long as the loan obligations are met.