Loan options / Reverse mortgages
Turn the homeyou own intoincome you keep.
A reverse mortgage lets homeowners 62 and older convert part of their home equity into cash without selling and without a monthly mortgage payment. You stay in your home, you keep the title, and the loan is repaid when you sell, move out permanently, or pass away. The most common version is the FHA-insured Home Equity Conversion Mortgage, or HECM.
Who it's for
For homeowners who want to stay put.
A reverse mortgage is a financial tool, not a last resort. It fits some retirement plans well and others poorly, which is why counseling is required before you apply.
Supplementing fixed income
Monthly draws, a lump sum, a line of credit, or a mix, tailored to how you want to use the money.
Eliminating the payment
Proceeds first pay off any existing mortgage, which removes the monthly payment from your budget.
A growing line of credit
A HECM line of credit grows over time, unused, and cannot be frozen or reduced by the lender.
HECM for Purchase
Buy a home that fits retirement better, using a reverse mortgage to finance part of the price with no monthly payment.
What you'll need
What a reverse mortgage requires.
- AgeThe youngest borrower on title must be at least 62. Younger spouses can be protected as eligible non-borrowing spouses.
- EquitySubstantial equity, generally 50% or more. Any existing mortgage is paid off with the proceeds.
- OccupancyThe home must be your primary residence, and you must continue to live there.
- Financial assessmentA review of income and credit history to confirm you can keep up with taxes, insurance, and upkeep.
- CounselingA session with an independent HUD-approved counselor before you apply. It is required, and it is useful.
- The propertySingle-family, FHA-approved condo, 2–4 units you occupy, or manufactured homes meeting FHA standards, in good repair.
How it works
From first call to closing. Five steps, counseling included.
Talk to a reverse specialist
One call, one person. We walk through how a reverse mortgage works and whether it fits your plan, with no obligation.
Independent counseling
A session with a HUD-approved counselor, required by law, so you hear the pros and cons from someone who is not selling you anything.
Application and financial assessment
We confirm age, equity, occupancy, and that taxes and insurance are affordable going forward.
Appraisal
An FHA appraiser values the home; the amount available depends on that value, your age, and current rates.
Close and choose your payout
Line of credit, monthly payments, lump sum, or a mix. Any existing mortgage is paid off at closing.
How you receive the money
Your choice, and you can change it later.
Line of credit
Draw what you need, when you need it. The unused balance grows over time.
Monthly payments
Fixed monthly payments for a set term or for as long as you live in the home.
Lump sum
A single payout at closing, available at a fixed rate.
A combination
Pay off your mortgage, keep a line of credit for the future, and take a monthly amount. Your loan officer will model the options.
Questions
Straight answers.
Will the bank own my home?
No. Title stays in your name. The reverse mortgage is a lien, the same as a regular mortgage.
What do I still have to pay?
Property taxes, homeowners insurance, HOA dues if any, and normal maintenance. Falling behind on these can put the loan in default.
What happens when I pass away?
Your heirs can sell the home and keep whatever is left after the loan is repaid, refinance it, or pay off the balance and keep it. They never owe more than the home is worth.
How much can I get?
It depends on your age, current interest rates, and the home's appraised value up to the FHA limit. Older borrowers and higher-value homes qualify for more.
Can my spouse stay in the home if I die first?
If your spouse is a co-borrower, yes. If your spouse is younger than 62, they can be listed as an eligible non-borrowing spouse and stay in the home under the loan's terms.
Is a reverse mortgage expensive?
There are upfront costs, including FHA mortgage insurance, origination, and closing costs, most of which can be financed. Your loan officer will show the total cost of the loan alongside the alternatives.
Talk to a reverse mortgage specialist in your state.
Licensed by name, in the state you are buying in. No call center, no hand-offs.
This material is not from HUD or FHA and was not approved by HUD or a government agency. A reverse mortgage is a loan that must be repaid, and borrowers remain responsible for property taxes, insurance, and home maintenance. Program terms are subject to change. Belem Servicing LLC d/b/a Patriot Home Mortgage, NMLS #715386. Equal Housing Lender.