Room in your monthly budget
No monthly principal and interest payment is required while you meet the loan terms. Interest and mortgage insurance accrue, so the loan balance generally grows.
Home / Reverse Mortgages
Reverse Mortgages
More clarity. A thoughtful look at home equity.
How does a reverse mortgage work?
A reverse mortgage lets eligible homeowners borrow against home equity. For a HECM, monthly principal and interest payments are not required while the loan terms are met, but interest and fees increase the balance. Taxes, insurance, maintenance and occupancy obligations continue. The loan must eventually be repaid; proprietary programs have separate rules.
Quick answers
Open a question. Read the answer right here.
Does every reverse mortgage follow HECM rules?
No. HECMs are FHA-insured. Proprietary reverse mortgages have separate age, state, property, and loan requirements. Some first-lien options serve higher-value homes, while certain second-lien options preserve an eligible existing mortgage. Your first-mortgage payments still continue with a second-lien loan. We can compare the actual options for your situation.
Could I qualify after being declined for a HELOC?
Possibly, but a prior decline does not establish eligibility. Reverse mortgage financial assessment differs from traditional mortgage qualification. Credit, income, assets, property expenses, equity, and program requirements still need review.
Can my spouse or family keep the home?
The answer depends on borrower status, spouse protections, the loan terms, and the family’s repayment plan. A co-borrower and a non-borrowing spouse have different rights. Heirs should contact the servicer promptly to discuss options and deadlines. We can help you identify these questions before you apply.
What should we discuss first?
Start with what you want your housing to make possible, how long you expect to stay, who lives with you, and the costs you need to cover. A home value range and mortgage balance are useful. Leave personal financial documents out of public forms; we’ll arrange a secure next step if needed.
Understand the structure
Ask how the balance changes and when repayment becomes due.
Review ongoing obligations
Property taxes, homeowners insurance, and maintenance still matter.
Consider your household
Discuss occupancy, co-borrowers, and plans for a spouse or heirs.
Compare alternatives
Review other ways to use equity or adjust housing costs before deciding.
Start with the essentials
What a HECM does. What it still asks of you.
A Home Equity Conversion Mortgage, or HECM, is an FHA-insured reverse mortgage for eligible homeowners age 62 or older. It turns part of your home equity into borrowed funds while you keep ownership of the home.
Responsibilities that continue
The home must remain your principal residence. Taxes, insurance, maintenance, and applicable property charges remain your responsibility. Failure to meet the requirements can lead to repayment becoming due and foreclosure.
An individual review
Age alone does not qualify you. Your equity, property, income, assets, credit history, and ability to meet ongoing expenses are reviewed. Independent HUD-approved counseling is required.
HUD’s HECM overview (new tab) · CFPB eligibility guidance (new tab)
Your goals first
Several ways to use housing equity.
Replace an existing mortgage
A HECM can help pay off the mortgage you already have. The existing balance must be settled at closing with HECM proceeds, your funds, or both. Compare the monthly relief with the cost of the new loan.
Keep a reserve available
An adjustable-rate HECM may offer a line of credit, monthly advances, or a combination. Unused credit can grow under the loan terms. That is more borrowing capacity, not investment income.
Buy a home that fits
HECM for Purchase can help finance a new primary home. You contribute the gap between available proceeds and the purchase price plus closing costs. There is no universal down payment percentage.
Available proceeds depend on age, interest rates, and eligible home value, subject to program limits. Existing liens, financed costs, and required set-asides can reduce the amount available to use.
Compare HECM payment choices (new tab) · Explore HECM for Purchase
Consider the whole picture
The right fit includes a plan for later.
The complete cost
Review upfront closing costs, mortgage insurance, ongoing interest, and any servicing charges. Financing costs increases the balance and leaves less equity available. Compare a written quote with keeping your current loan, other borrowing, or moving.
Your home and household
Discuss a possible move, future care needs, a spouse, and your wishes for heirs. A sale, permanent move, death of the last borrower, or unmet obligations can make the loan due, subject to applicable spouse protections.
A home you can sustain
Include room for repairs, rising insurance costs, taxes, and care needs. If a move is likely soon or the property expenses are difficult to maintain, another approach may fit better.
Understand costs (new tab) · Prepare for a family conversation
For financial planners
Bring the housing question into the plan.
Would a different way to access home equity help a client manage cash flow, prepare for a move, or build a contingency reserve? Our planner guide connects the mortgage mechanics with costs, household protections, and alternatives to compare.
You guide the financial plan. We explain the mortgage and provide current loan figures. The independent counselor helps the client understand the choices.
Questions worth asking
Let’s make the details easier to understand.
Does every reverse mortgage follow HECM rules?
No. HECMs are FHA-insured. Proprietary reverse mortgages have separate age, state, property, and loan requirements. Some first-lien options serve higher-value homes, while certain second-lien options preserve an eligible existing mortgage. Your first-mortgage payments still continue with a second-lien loan. We can compare the actual options for your situation.
Could I qualify after being declined for a HELOC?
Possibly, but a prior decline does not establish eligibility. Reverse mortgage financial assessment differs from traditional mortgage qualification. Credit, income, assets, property expenses, equity, and program requirements still need review.
Can my spouse or family keep the home?
The answer depends on borrower status, spouse protections, the loan terms, and the family’s repayment plan. A co-borrower and a non-borrowing spouse have different rights. Heirs should contact the servicer promptly to discuss options and deadlines. We can help you identify these questions before you apply.
What should we discuss first?
Start with what you want your housing to make possible, how long you expect to stay, who lives with you, and the costs you need to cover. A home value range and mortgage balance are useful. Leave personal financial documents out of public forms; we’ll arrange a secure next step if needed.
Spouse and heir considerations (new tab) · Learn about a proprietary second-lien option (new tab)
Reviewed September 14, 2026. General education. Availability, costs, and eligibility require an individual review. Consult your financial, tax, and legal professionals about your broader plan.
Connections before mortgages
Big plans.
Small questions.
We’re here for both.
Tell us what’s on your mind. Buying, refinancing, or exploring your options starts with a conversation.
✓ Your goals first✓ Room for questions✓ A personal conversation
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