Frequently Asked Questions

Will I still own my home?

With a reverse mortgage, you — not the lender — own and control your home. You can't be forced out so long as you uphold the terms of the loan. As with a traditional forward mortgage, the lender places a lien on the property to ensure the loan will be repaid.

The right to remain in the home is contingent on paying property taxes and homeowner's insurance, maintaining the home, and complying with the loan terms.

Will my heirs get stuck with the debt?

No. A reverse mortgage is a "non-recourse" loan, which means the lender can only enforce the debt through the sale of the property and cannot look to your other assets or your estate's assets. If the loan balance is higher than the home's value, your heirs will not be responsible for paying the difference.

What are the borrower qualifications?

To be eligible for a HECM reverse mortgage, you typically need to be a homeowner 62 or older. Some proprietary options are available to homeowners 55+ in many states. You'll generally need about 50% equity in the home and will undergo a financial assessment to determine your ability to meet the loan terms.

What happens at the end of a reverse mortgage?

The loan ends when the last borrower passes away or permanently leaves the home. The loan principal and accrued interest must be repaid. Heirs can repay through the sale of the home, by paying off the balance with other funds, or by signing over the title and walking away — owing nothing more.

How am I protected?

Reverse mortgages are highly regulated by the US government with strict consumer protections. Key safeguards include maximum claim limits, required financial assessments, and mandatory counseling with an independent HUD-approved counselor before the loan can proceed.

What kind of fees are involved?

Apart from mandatory counseling costs and FHA insurance (on certain loans), the fees are generally comparable to a traditional mortgage. With a reverse mortgage, most fees are added to the loan balance — which means you pay very little out-of-pocket upfront.