Basic Reverse Mortgage Information

A reverse mortgage is a special type of home loan that lets a homeowner 62 or older convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD’s reverse mortgage provides these benefits, and is federally-insured as well. (There is more on the various types of Reverse Mortgages—click here)

Here are the Facts

1. Safe government insured program (click here for info on Consumer Safeguards)
2. All the money you ever receive from the Reverse Mortgage is tax free
3. There is no repayment unless you move or die
4. You retain title to your home and it goes to your heirs as you choose
5. You can use the cash for anything you want
6. It’s O.K. with social security & medicare
7. There are no income or credit requirements.

Simply put a Home Equity Mortgage (HECM) is nothing more than a loan on the equity in your home` that you don’t pay back as long as you live in your home. We know you might not have heard of a loan that you never have to pay back—The U.S. government came up with this program especially for senior homeowners, 62 and older.

Here’s how it works. You take out a loan on the equity in your home and you don’t pay it back until you move or die, whichever comes first. When you’re gone, the loan becomes due and payable and your heirs can sell the home to pay off the loan or by borrowing on the equity left in the house. FHA guarantees that the loan amount to be repaid by the heirs or the borrower, will not exceed the value of the home.

For additional information go to our frequently asked questions page. or for more information about the types of Reverse Mortgages, click here....