What Is a Reverse Mortgage?

A reverse mortgage is a loan that lets qualified homeowners tap equity without selling their home. Borrowers choose how they receive proceeds either as a lump sum, monthly payments, a line of credit, or a combination.  Read on to learn more about how reverse mortgages work.
Reverse Mortgage Qualifier
Reverse Mortgage Qualifier

Qualifying for a Reverse Mortgage

To apply for a reverse mortgage, borrowers must certify that they have undergone reverse mortgage counseling through a Housing and Urban Development (HUD) approved agency. This counseling ensures that the borrower fully understands the terms of their mortgage and what they are agreeing to.

In addition to the mandatory counseling, the basic requirements to qualify for a reverse mortgage are as follows:

  • Borrowers must be 62 years or older for HECMs. Ages for proprietary reverse mortgages can vary. In some states, borrowers can take proprietary reverse mortgages at 55.
  • Borrowers must be able to meet financial obligations. Although borrowers don't make required monthly payments on their reverse mortgage, they are responsible for property taxes, home association dues, and insurance. Borrowers must also have the means to maintain the condition of the property at an acceptable standard. A financial assessment the lender conducts as a part of the application process will helps determine borrowers can meet these obligations.
  • Borrowers must live in the home. A home must be a borrower's primary or principal residence. That means they typically reside in the house for the majority of their time. Borrowers must certify annually that they still live in the home.
  • Borrowers must have substantial equity in the home. There is not a set percentage of equity a borrower must have to qualify. Generally, lenders require 50% or more.

It's not enough for a borrower to meet the qualifications of a reverse mortgage; the property must also be eligible.

Reverse Mortgage Qualifier
Reverse Mortgage Qualifier

The Lowdown on Reverse Mortgage Loans...

The Lowdown on Reverse Mortgage Loans...

Our Reverse Mortgage Rates Are Low & Our Process is Quick & Painless

A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA) and allow homeowners to convert their home equity into cash with no monthly mortgage payments.

We're here to make the reverse mortgage process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE Reverse Mortgage Qualifier.

We'll help you clearly see differences between reverse mortgage options, allowing you to choose the right one for you.

The Reverse Mortgage Process

Here's how our home loan process works:

  • Complete our simple Reverse Mortgage Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the offer that best fits your needs

Your Home Loan Could Be
Fully Funded 30 Days From Now

  • Fixed Rates

    Fixed Rates

  • Adjustable Rates Mortgage (ARM)

    Adjustable Rates
    Mortgage (ARM)

  • Conforming Loans

    Conforming
    Loans

  • Jumbo & Super Jumbo Loans

    Jumbo & Super
    Jumbo Loans

  • FHA, VA, & USDA Loans

    FHA, VA, & USDA
    Loans

  • Terms from 5 to 30 Years

    Terms from 5 to
    30 Years

Get Your FREE Reverse Mortgage Quote Now!

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below:

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