SPECIALTY FINANCING

Reverse mortgage considerations

A reverse mortgage can convert some home equity to proceeds, with significant eligibility and ongoing obligations.

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A useful starting pointEvery mortgage has its own terms, costs, and qualification requirements. Use this overview to prepare questions and compare written loan estimates.

THE OVERVIEW

How this option works

A Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program for eligible homeowners. It can provide access to part of a home’s equity, but the loan balance grows as interest and charges accrue.

For a HECM, borrowers generally must meet age, property, occupancy, and financial requirements and complete counseling with a HUD-approved counselor. Borrowers must continue meeting obligations such as paying property taxes and homeowners insurance and maintaining the home.

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Questions to ask

Ask for the details in writing and compare the total cost, payment, and terms for your own scenario.

What amount may be available and what fees and interest accrue?
What ongoing costs and occupancy obligations must be maintained?
How may the loan affect a spouse, heirs, public benefits, or plans to move?

General information only. Program rules, rates, and lender availability can change. This page is not an offer, approval, or personal recommendation. Review current written terms with a qualified mortgage professional.

Official information: HUD: Home Equity Conversion Mortgages ↗

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Reverse mortgage considerations

How this option works

Questions to ask

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