Reverse mortgage · FHA-insured HECM
Tap your home’s equity — and keep living in your home.
A reverse mortgage lets homeowners 62 and older turn built-up equity into cash — as a line of credit, monthly income, or a lump sum — with no required monthly mortgage payment. You keep the title and stay in your home; the loan is repaid when the last borrower sells or leaves.
What it is
Home equity, converted — without a monthly payment
A reverse mortgage is a loan that lets you borrow against the equity you’ve built in your home without selling it or taking on a monthly mortgage payment. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration. You keep the title and continue to live in your home as your primary residence.
Instead of you paying the lender each month, the balance is repaid in a single event — when the last borrower sells the home, permanently moves out, or passes away. Because it is a loan, the balance grows over time as interest and fees are added, which reduces the equity that remains.
- No required monthly mortgage payment — you still cover property taxes, insurance and upkeep.
- You keep the title and ownership of your home.
- FHA-insured (HECM) — the most widely used and regulated reverse mortgage.
- Non-recourse — you and your heirs never owe more than the home is worth when it’s sold.
- Proceeds are generally not taxable — it’s loan money, not income (confirm with your tax advisor).
- Repaid when the last borrower sells, permanently moves out, or passes away.
Three ways to receive it
Take the money the way that fits your plan
Growing line of credit
Draw as needed
Open a line and draw only what you need, when you need it. Interest accrues only on what you’ve drawn, and the unused portion grows over time — a standby reserve for the years ahead.
- Interest only on funds drawn
- Unused credit line grows
- Flexible, on-demand access
Monthly income
Tenure or term
Receive steady monthly payments — for as long as you live in the home (tenure) or for a set number of years (term) — to supplement retirement income.
- Predictable monthly deposits
- Tenure (lifetime in home) or term
- Can be combined with a credit line
Lump sum
One-time draw
Take a single draw at closing for a specific purpose — paying off an existing mortgage, a home project, or other needs. Fixed-rate option available on a lump-sum draw.
- One fixed amount at closing
- Fixed-rate option
- Pays off any existing mortgage first
You can combine these — for example, a line of credit alongside monthly income. A HECM for Purchase even lets you buy your next home with a reverse mortgage and no required monthly payment. Homes valued above the FHA limit may qualify for a proprietary (jumbo) reverse mortgage, and some proprietary programs start at age 55.
What stays your responsibility
A reverse mortgage still comes with obligations
- Property taxes paid on time.
- Homeowners insurance kept in force (plus flood insurance where required).
- HOA or condo dues kept current.
- The home maintained in good repair.
- The home remains your primary residence.
- HUD-approved counseling completed before you apply — it’s required, and it’s there to protect you.
What to expect
From counseling to funding
- 1Independent counseling. You complete a session with an independent HUD-approved counselor. It’s required on a HECM — and it’s there to make sure the loan is right for you.
- 2Application & appraisal. We confirm your eligibility and an FHA appraisal establishes your home’s value — which, with your age and current rates, sets how much you can access.
- 3Underwriting & FHA insurance. The loan is underwritten and, on a HECM, insured through FHA. A financial assessment confirms you can keep up taxes and insurance.
- 4Closing & funds. You choose how to receive your money, any existing mortgage is paid off from the proceeds, and the rest is yours — with a three-day right to cancel.
Common questions
Reverse mortgage FAQ
Do I still own my home?
Yes. You keep the title and ownership. A reverse mortgage is a lien against the home, like any mortgage — the lender does not take ownership.
Will I have a monthly mortgage payment?
No required principal-and-interest payment. You do remain responsible for property taxes, homeowners insurance, any HOA dues, and keeping the home maintained. You can make voluntary payments toward the balance if you’d like.
When does the loan have to be repaid?
When the last borrower sells the home, permanently moves out (generally more than 12 months, for example into long-term care), or passes away. It’s usually repaid by selling the home or by refinancing.
What happens to my heirs — can my family keep the home?
Yes. Because a HECM is non-recourse, your heirs never owe more than the home is worth. To keep the home they can repay the loan balance or 95% of the appraised value, whichever is less. If they sell, any remaining equity is theirs.
How much can I borrow?
It depends on the age of the youngest borrower, your home’s value (up to the FHA limit), and current interest rates. Older borrowers and higher-value homes generally qualify for more.
Is the money taxable?
Reverse mortgage proceeds are loan funds, not income, so they are generally not taxable. They can, however, affect need-based benefits such as Medicaid or SSI in some cases. Confirm with your tax advisor and benefits counselor.
Do I have to be 62?
For an FHA-insured HECM, yes — the youngest borrower must be at least 62. Some proprietary (jumbo) reverse mortgages start at age 55. A non-borrowing spouse under 62 may be able to remain in the home under HUD protections.
Can I buy a home with a reverse mortgage?
Yes. A HECM for Purchase lets you buy your next home — for example, right-sizing closer to family — using a reverse mortgage, with no required monthly mortgage payment.
What if my home is worth more than the FHA limit?
Homes above the FHA HECM limit may qualify for a proprietary (jumbo) reverse mortgage, which can unlock more of a higher-value home’s equity.
Is counseling really required?
Yes. Independent HUD-approved counseling is required before you can proceed with a HECM. It’s a consumer protection that makes sure you understand the loan and your alternatives.
See what your home could provide
Let’s run your numbers
Tell Justin your age, roughly what your home is worth, and any mortgage balance, and you’ll get an honest look at what a reverse mortgage could provide — and whether it’s the right fit. Usually the same day, with no credit pull to start.
I help homeowners weigh a reverse mortgage with clear numbers and no pressure — including when it isn’t the right answer — and walk you through counseling and the steps if it is.
Three ways to start
Apply now, or email or text Justin directly — usually answered the same day.
No credit pull to start — reach out and we’ll see whether a reverse mortgage fits your plan.