What is a Reverse Mortgage

A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan. This loan program enables seniors to access a portion of their home's equity to obtain tax free funds without having to make monthly mortgage payments as long as they live in the home as their primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to FHA requirements.

Eligibility for a Reverse Mortgage
  • 62 Years or older
  • Home must be owned
  • Meet financial eligibility criteria as established by HUD
Eligble Home Types
  • One to Four unit owner-occupied homes and approved townhomes, condominiums and manufactured homes
Distribution of money from a Reverse Mortgage Loan
  • Lump sum- a lump sum of cash at closing
  • Tenure - equal monthly payments as long as the homeowner lives in the home
  • Term - equal monthly payments for a fixed period of months
  • Line of Credit - draw any amount at any time until the line of credit is exhausted
  • Any combination of those listed above


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