Reverse Mortgages
Convert your home equity into tax-free cash — with no monthly mortgage payments required. Designed exclusively for homeowners 62 and older.
You spent decades paying for your home. Now let your home pay for you.
What Is a Reverse Mortgage?
A reverse mortgage — formally known as a Home Equity Conversion Mortgage (HECM) — allows homeowners aged 62 and older to convert a portion of their home equity into cash without selling the home or making monthly mortgage payments. Instead of you paying the lender, the lender pays you.
The loan balance grows over time as interest accrues, and it’s repaid when you sell the home, move out permanently, or pass away. Your heirs can choose to sell the home and keep any remaining equity, or refinance the balance into their own mortgage.
Who Is This Best For?
Reverse mortgages are ideal for retirees who are house-rich but cash-poor — homeowners with significant equity who want to supplement their retirement income, cover medical expenses, eliminate existing mortgage payments, or simply improve their quality of life without selling their home.
This isn’t the right fit for everyone, and I believe in providing clear, honest guidance so you can make an informed decision. If a reverse mortgage isn’t appropriate for your situation, I’ll tell you directly and help you explore alternatives.
How It Works
- Age requirement: At least one borrower must be 62 or older
- Primary residence: The home must be your primary residence
- Equity: You need substantial equity in your home (generally 50%+)
- Counseling: HUD-approved counseling is required before closing (we’ll guide you through this)
- Payout options: Receive funds as a lump sum, monthly payments, a line of credit, or a combination
- Obligations: You must continue paying property taxes, homeowners insurance, and maintain the home
The amount you can borrow depends on your age, home value, and current interest rates. Generally, the older you are and the more equity you have, the more you can access. FHA lending limits apply to HECM loans.
Key Advantages of Reverse Mortgages
No Monthly Mortgage Payments
The most significant benefit — you stop making monthly mortgage payments entirely. The loan is repaid when you eventually leave the home, giving you immediate cash flow relief.
Stay in Your Home
You maintain full ownership and can live in your home for as long as you want. There’s no requirement to move, and you don’t give up your title. The home remains yours.
Tax-Free Proceeds
Reverse mortgage proceeds are not considered taxable income. Whether you take a lump sum or monthly payments, the money you receive is tax-free. Consult your tax advisor for your specific situation.
Non-Recourse Protection
You (or your heirs) will never owe more than the home is worth. If the loan balance exceeds the home’s value, FHA insurance covers the difference. There’s no personal liability beyond the home.
Common Questions About Reverse Mortgages
Will I still own my home?
Yes — you retain full ownership and title to your home. A reverse mortgage is simply a loan secured by your property, just like a traditional mortgage. You can sell the home at any time, and any equity remaining after the loan is repaid belongs to you or your heirs.
What happens when I pass away?
Your heirs have options. They can sell the home and keep any equity above the loan balance, refinance the reverse mortgage into a traditional mortgage to keep the home, or let the lender sell the home. They will never owe more than the home’s value, thanks to FHA’s non-recourse protection.
Can I lose my home with a reverse mortgage?
The loan can become due if you fail to pay property taxes, homeowners insurance, or maintain the home — these are your ongoing obligations. As long as you stay current on these items and continue living in the home as your primary residence, your position is secure.
How much money can I get?
The amount depends on your age (older = more), your home’s appraised value, and current interest rates. As a rough guide, borrowers can typically access 40-60% of their home’s value. I can run the numbers for your specific situation in just a few minutes.
Let’s Explore Your Reverse Mortgage Options
No pressure. No obligation. Just clarity.
Most people start with a quick call — it makes everything easier.
Garry McDonald | NMLS #1922072 | DRE# 01781703 | (949) 534-6686