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WHAT IS A REVERSE MORTGAGE? (Home Equity Conversion Mortgage)

A reverse mortgage

A reverse mortgage is a loan that allows seniors  who are 62 or older to access to the equity in you home by converting a portion of the value into cash.  Seniors can receive 50 -70% of the appraised value of their home  and live there without making monthly mortgage principle & interest payments.  Loan proceeds will pay most of the closing costs and any remaining mortgage.  Funds may also be used for eliminating debt, or simply improving the quality of life during your retirement years. Homeowners are responsible for their  property taxes and home  insurance.

Government insured 

The HECM is a federally insured and guaranteed program.  It is a safe way for you to access the equity in your home without ever making a mortgage payment.

No matter what happens to the economy, how much money you receive, or how long you live in your home you will never be required to make a mortgage payment.  In addition, no matter what happens to your lender or your home's value you have guaranteed access to your money.
This is a non-recourse loan, when all borrowers no longer live in the property the heirs may choose new financing to pay off the reverse loan and keep the home ,  They will never owe more than the current market value.   The home may be sold and the lender will receive what is owed with the remaining proceeds  going to the estate. 

How are Reverse Mortgages different today?  

The program is highly regulated and continues to make  changes that benefit and protect the borrower.  Recent changes include:

  • A younger spouse, under age 62 can remain in the home after the loss of the primary borrower, but the funds available will be based on the younger age.

  • HUD upfront mortgage insurance at closing has been greatly reduced for borrowers 

  •  Income and other assets are reviewed to determine a reasonable expectation that the borrower will have funds available annually for their property taxes, homeowner insurance, general property maintenance and any homeowner association fees.

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Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Reverse Mortgage Borrowers must be age 62 or over and the home must be their primary residence. Homeowners must complete counseling with a government-certified counselor before applying. Homeowners must pay property taxes, insurance, and homeowner’s association dues. Consult a tax professional for tax consequences. A reverse mortgage is a loan and must be repaid. Loan amount based on equity in your home. Payout available in lump sum or in regular scheduled payments. Proceeds will not affect Social Security or Medicare Benefits. There’s no need to repay the loan as long as you continue to live in the house and maintain the property to FHA standards. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Interest rates and program guidelines are subject to change without notice. AccessReverse is an Equal Opportunity Lender. NMLS#4566


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