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What is a Reverse Mortgage
| A reverse mortgage is a unique loan that enables senior homeowners to convert part of the equity in their homes into income without having to sell the home, give up title, or take on new monthly mortgage payments. Reverse mortgages are available to individuals 62 or older who own their home. |
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C |
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How does this differ from a conventional loan? |
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Does not require repayment until: |
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 Borrower (s) move out |
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Borrower (s) sell the property |
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Borrower (s) pass away |
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No income and minimal credit qualification |
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No monthly mortgage payments required |
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C |
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How safe is a Reverse Mortgage? |
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FHA administers the HECM reverse mortgage program and guarantees that borrowers receive their requested loan advances if the lender defaults. |
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You or your heirs will never owe more than your house is worth. |
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HECM = The HUD/FHA Home Equity Conversion Mortgage. |
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C |
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Borrower's Responsibility |
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Keep property taxes current. |
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Maintain homeowners insurance. |
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Maintain property in reasonable condition. |
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Utilize home as primary residence. |
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