​​Non Borrowing Spouse (< 62) is now protected

All FHA HECM’s are insured through the Federal Housing Administration (FHA)

Borrowers have no limit as to how long they can stay in the home

When loan becomes due, Estate can buy your home at 95% of current value, regardless of what is owed

Education – Financial counseling is required (provided by HUD)

Things to Consider


​​A loan for seniors age 62 and older

Converts a portion of home equity into cash with no monthly mortgage payments

Majority of reverse mortgages are HECMs (Home Equity Conversion Mortgage, a federally insured program)


​​No monthly mortgage payments

Non-recourse loan – you’ll never owe more than what home is worth

Leverage crucial retirement cash liquidity

No limitations on how you use funds

No pre-pay penalty

What is a Reverse Mortgage?

​​You must live in home as your principal residence.

No repayment of the mortgage is required until you permanently move out, sell the home, or pass away.

You are required to continue paying property taxes and insurance and maintain the home according to FHA guidelines.

How Does it Work?

​​The HECM is insured through FHA and is a non-recourse loan.

The homeowner or their heirs will never be asked to pay back more than the value of the home, even if the debt has grown to be greater than the value.

Prepare for counseling meeting

Continue keeping property taxes and homeowners insurance current

Home value, owner age(s), and current interest rate determine eligible amount to borrow


Non-Recourse Loan

​​Be 62 years of age or older

Own the property outright or have considerable equity

Occupy the property as your principal residence

Not be delinquent on any federal debt

Participate in a consumer information session from HUD

​​Today, more homeowners are using reverse mortgages as a key part of their long-term retirement strategy. Here are some smart ways to use the New Reverse Mortgage to help meet your retirement goals:

• Pay off a traditional mortgage, to eliminate monthly mortgage payments
• Make retirement savings last longer
• Preserve investment accounts during market downturns with a “standby” line of credit
• Supplement income with monthly tenure payments
• Use a line of credit to build a safety net for emergencies, home repairs, and healthcare expenses
• Afford to retire earlier, or else wait until later to maximize lifetime Social Security benefits
• Buy a home that better fits your needs
• Support “aging in place” expenses, including caregiving and home modifications.

Consumer Protections

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