Reverse Mortgage
Equity as income, with no monthly payment.
Reverse mortgages let homeowners aged 62 and older convert equity into cash, a line of credit, or monthly payments, with no required monthly mortgage payment while they live in the home.
What makes this loan different
- No required monthly mortgage payment
- Lump sum, line of credit, or monthly draws
- HECM and jumbo proprietary options
- Reverse for purchase allows a right-sizing move
Who this is built for
- Homeowners 62 and older with substantial equity
- Retirees restructuring cash flow
- Buyers downsizing without a new monthly payment
How it works
The loan balance grows over time rather than shrinking, and it is repaid when the last borrower sells, moves out permanently, or passes away. You retain title and remain responsible for property taxes, insurance, and maintenance.
The line-of-credit option is the most misunderstood and often the most valuable, because the unused portion grows over time.
Reverse for purchase
A HECM for purchase lets an older buyer put down roughly half the price of a new home and finance the rest with no monthly payment, which is a powerful tool for right-sizing closer to family.
What lenders typically ask for
- Age verification for all borrowers — federally insured programs require 62 or older, and some proprietary programs set different minimums
- A completed counseling certificate from an independent HUD-approved counselor, which is mandatory
- Title and property documentation, including evidence of the property's condition
- A financial assessment showing the ability to keep taxes, insurance, and maintenance current
- Documentation for any non-borrowing spouse
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Independent counseling is required before anything proceeds.
This is a federal requirement, not a formality, and the counselor is independent of the lender. It exists because this is a consequential and hard-to-reverse decision.
The obligations do not go away.
Property taxes, homeowner's insurance, HOA dues, and maintenance remain the borrower's responsibility. Falling behind on any of them can put the loan in default and the home at risk, which is the single most important thing to understand about this product.
The balance grows rather than shrinks.
Interest and fees accrue onto the loan. Equity in the property generally declines over time, and that has direct consequences for heirs and for any plan involving the home as an inheritance.
This is a family conversation.
Non-borrowing spouse protections, heir repayment obligations, and the effect on estate planning all deserve discussion with family and an independent advisor before proceeding. Anyone who tells you this is simple is not being straight with you.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.