Your equity works for you — while you stay home.
FHA-insured Home Equity Conversion Mortgages (HECM) and proprietary jumbo reverse programs for homeowners 62 and older. Convert equity into a line of credit, monthly draws, or a lump sum — with no monthly mortgage payment required. You keep title; property taxes, insurance, and upkeep remain your responsibility.
How a reverse mortgage actually works
A reverse mortgage lets homeowners 62 and older borrow against home equity without a required monthly principal-and-interest payment. Interest accrues onto the balance instead, and the loan comes due when the last borrower sells, moves out, or passes away. You keep title to your home the entire time — and you remain responsible for property taxes, homeowners insurance, and maintaining the property. Falling behind on those obligations can trigger default, which is why we walk through the ongoing costs before anyone applies.
The most common structure is the HECM — the FHA-insured version, which requires a session with an independent HUD-approved counselor before you can apply. That counseling requirement is a feature, not a hurdle: it means someone with no stake in the transaction confirms you understand the product. For higher-value homes above the HECM limit, proprietary jumbo reverse programs reach loan amounts FHA can’t, some starting at age 55.
What it’s for — and what protects your family
Proceeds can pay off an existing mortgage (eliminating that monthly payment), fund a standby line of credit that grows over time, supplement retirement income with monthly draws, or — via HECM for Purchase — buy a new primary residence outright with roughly half down and no monthly payment on the rest. The right structure depends on what the money is for, and we’ll model the options side by side.
HECMs are non-recourse: when the loan comes due, neither you nor your heirs ever owe more than the home is worth, because FHA insurance covers any shortfall. Heirs can keep the home by paying off the balance or 95% of appraised value, whichever is less, or simply sell and keep any remaining equity. A reverse mortgage is a loan against your equity — not a government benefit — and we’ll tell you plainly when it’s the wrong tool.
Reverse Mortgages: common questions
Do I give up ownership of my home with a reverse mortgage?
No. You keep title, just like any other mortgage. The lender holds a lien, and the loan is repaid when the last borrower sells, permanently moves out, or passes away. You must keep paying property taxes and homeowners insurance and maintain the home.
How much can I get from a reverse mortgage?
It depends on the youngest borrower’s age, current interest rates, and your home’s value — older borrowers and lower rates unlock more. Any existing mortgage is paid off first from the proceeds. We’ll run your exact numbers before you commit to anything.
Can my heirs inherit the house?
Yes. When the loan comes due, heirs can keep the home by paying the loan balance or 95% of the appraised value, whichever is less, refinance it in their own name, or sell it and keep the remaining equity. Because HECMs are non-recourse, they never owe more than the home is worth.
What are the requirements for a HECM reverse mortgage?
At least one borrower aged 62+, the home as your primary residence, sufficient equity, a financial assessment showing you can sustain taxes and insurance, and a counseling session with an independent HUD-approved agency before application. Single-family homes, FHA-approved condos, and 2–4 unit properties where you occupy one unit all qualify.
Is a reverse mortgage expensive?
HECMs carry FHA mortgage insurance (upfront and annual) plus standard closing costs, so they cost more upfront than a HELOC. In exchange you get no required monthly payment, a credit line that can’t be frozen and grows over time, and non-recourse protection. Whether that trade is worth it depends on how long you’ll stay and what the money is for — we’ll show you the comparison honestly.
Send us the scenario. We'll tell you if Reverse is the right fit — and what it prices at.
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Program features described above are general descriptions of loan programs offered by third-party lenders and are subject to change without notice. This is not an offer of credit or a commitment to lend. All loans are subject to credit approval, income and asset verification, property appraisal, and program eligibility requirements. Not all applicants will qualify. Verified Home LLC is a mortgage broker, not a lender, and arranges loans with third-party providers. NMLS #2693996. Equal Housing Opportunity.