How Does A Reverse Mortgage Work

A reverse mortgage loan, also called a HECM, is a special type of home equity loan that allows senior homeowners to turn part of the equity in their homes into tax-free cash. Watch the video – What Is A Reverse Mortgage

HECM is short for Home Equity Conversion Mortgage. All HECM reverse mortgage loans are insured by the Federal Housing Authority (FHA).  Reverse Mortgage Features:

  • NO income or credit requirements.
  • NO monthly payments.
  • Title remains in your name and passes to your heirs or estate upon your death. Bank does not take your home when you die.

Borrower Requirements

  • All borrowers must be a least 62 years old. You can do a reverse mortgage loan if one borrower is younger than 62. Speak with your lender for more details.
  • You should either own a property outright or have a very a small balance.
  • All borrowers are required to live in the property has their primary residence .
  • Cannot be delinquent on any federal debt.
  • All borrowers must complete a reverse mortgage counseling session given by an approved HECM counselor.

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