Frequently Asked Questions

A reverse mortgage is a loan available to homeowners aged 55 and older that allows them to access a portion of their home equity as cash — without selling the home, without giving up ownership, and without making monthly mortgage payments. The loan is repaid when the borrower sells the home, moves out permanently, or passes away. The most common type of reverse mortgage is the HECM, which is insured by the Federal Housing Administration.

With a traditional mortgage, you borrow money to buy a home and make monthly payments to gradually pay it off. With a reverse mortgage, the process works in the opposite direction — you already own the home, and you are accessing equity you have already built. Instead of making payments to a lender, the lender makes funds available to you. The loan balance grows over time rather than shrinking, and repayment happens at the end of the loan term rather than monthly throughout it.

Yes. You retain full legal ownership of your home for the entire life of the loan. Your name stays on the title. The lender places a lien on the property — the same as any other mortgage — but ownership does not transfer to the lender at any point. You are responsible for maintaining the home and staying current on property taxes and insurance, exactly as you are today.

No. Reverse mortgages have been available in the United States since the 1960s. The HECM program — the government-insured version — was established by Congress in 1988 and has been continuously refined since then. Millions of American homeowners have used reverse mortgages to fund their retirement.

No. A reverse mortgage is a loan, not a sale. You do not transfer ownership of your home to the lender. You retain all the rights of a homeowner — you can sell the property, renovate it, rent a portion of it, or leave it to your heirs. The reverse mortgage is simply a lien against the property, similar in legal structure to any other mortgage.

You must be at least 62 years of age to qualify for a HECM reverse mortgage. For married couples, at least one borrower must meet the age requirement. However, both spouses should ideally be listed on the loan — or at minimum discussed with your advisor — to ensure protections are in place for the younger spouse.

The following property types are generally eligible: single-family homes, FHA-approved condominiums, townhomes and Planned Unit Developments (PUDs) that meet HUD guidelines, and certain manufactured homes that meet FHA standards. The home must be your primary residence — vacation homes, second homes, and investment properties do not qualify.

No. You do not need to own your home free and clear. However, you must have sufficient equity in the property. If you have an existing mortgage, the reverse mortgage proceeds will first be used to pay it off — and the remaining funds will then be available to you.

Unlike traditional mortgages, a reverse mortgage does not have strict income or credit score requirements. However, lenders are required to conduct a financial assessment to confirm that you have the ability to maintain ongoing loan obligations — primarily property taxes, homeowner’s insurance, and basic home maintenance. If the assessment identifies a concern, funds may be set aside within the loan to cover these obligations going forward.

Yes, in most cases. An existing mortgage or home equity loan does not automatically disqualify you. The reverse mortgage proceeds will be used to pay off those existing liens at closing. Your eligibility depends primarily on how much equity remains in the home after those balances are paid off.

There is no minimum income requirement to qualify for a reverse mortgage in the traditional sense. The financial assessment looks at your ability to meet ongoing property obligations rather than verifying employment or salary. Many borrowers are retired with no active employment income and qualify comfortably.

Like any mortgage, a reverse mortgage comes with closing costs. These typically include an origination fee, an FHA mortgage insurance premium (for HECM loans), an appraisal fee, title insurance, and standard closing costs. Many of these costs can be financed into the loan rather than paid out of pocket. Your Home Reverse advisor will provide a full cost breakdown specific to your situation before you make any decisions.

Generally no. Funds received from a reverse mortgage are considered loan proceeds, not income, and are therefore not subject to federal income tax. They also typically do not affect Social Security or Medicare benefits. However, they may impact eligibility for certain need-based programs such as Medicaid. We always recommend consulting with a tax advisor or financial planner regarding your specific circumstances.

Interest on a reverse mortgage accrues over time and is added to the loan balance. Because no monthly payments are required, the interest compounds — meaning the loan balance grows over the life of the loan. This is an important concept to understand: the longer the loan is in place, the larger the outstanding balance will be when it eventually comes due.

No. Reverse mortgage proceeds do not affect Social Security retirement benefits or Medicare eligibility, as these are not need-based programs. However, if you receive Medicaid or Supplemental Security Income (SSI), you should consult with a benefits advisor before proceeding, as reverse mortgage proceeds left in your bank account past the end of the month they are received could potentially affect those benefits.

HECM reverse mortgages are non-recourse loans, which means you will never owe more than your home is worth at the time the loan is repaid — regardless of how the loan balance has grown or what happens to home values. FHA insurance covers the difference if the home sells for less than the outstanding loan balance. Neither you nor your heirs will ever be personally liable for more than the home is worth.

Yes. If interest rates drop significantly, your home appreciates in value, or your financial needs change, it may be possible to refinance an existing reverse mortgage into a new one. Your Home Reverse advisor can evaluate whether refinancing makes sense for your situation.

No. The lender cannot take your home simply because you have a reverse mortgage. Your home can only become due and payable under specific circumstances — if you sell the home, move out permanently, pass away, or fail to meet the ongoing loan obligations such as paying property taxes and insurance. As long as you meet those obligations and live in the home as your primary residence, you cannot be displaced.

As a reverse mortgage borrower, you are required to: live in the home as your primary residence, maintain the property in reasonable condition, stay current on property taxes, homeowner’s insurance, and any applicable HOA fees. These are the same obligations any homeowner has — the reverse mortgage does not add new burdens beyond what you are already managing.

No, as long as you continue to meet your loan obligations. You cannot be forced out of your home simply because you have a reverse mortgage. The only circumstances under which the loan becomes due are clearly defined: you sell the home, you permanently move out, the last borrower passes away, or you default on the ongoing obligations described above.

You are free to renovate your home as you see fit. In fact, many homeowners use reverse mortgage funds specifically to make improvements — upgrading kitchens, adding accessibility features, or general maintenance. The only requirement is that you maintain the home in a condition that meets basic property standards.

You can sell your home at any time. When you sell, the reverse mortgage balance — principal plus accrued interest and fees — is repaid from the sale proceeds. Any remaining equity after the loan is repaid belongs to you. There are no prepayment penalties for selling.

A reverse mortgage requires that the home be your primary residence. If you are away from the home for a temporary period — such as a short hospital stay or rehabilitation — this generally does not trigger repayment. However, if you permanently move out of the home, such as into a long-term care facility on an ongoing basis, the loan will become due. Your advisor can help you plan for this scenario in advance.

When the final surviving borrower passes away, the loan becomes due and payable. Your heirs will typically have up to 12 months to decide how to handle the property — they can sell the home and use the proceeds to repay the loan, keeping any remaining equity. They can also refinance the balance into a traditional mortgage if they wish to keep the home. If neither option is pursued, the lender will eventually initiate a foreclosure process to recover the loan balance.

Yes. Your heirs can absolutely inherit your home. If they want to keep the property, they must repay the outstanding reverse mortgage balance — typically by refinancing into a traditional mortgage or by using other funds. If they do not wish to keep the home, they can sell it, repay the loan, and keep any remaining equity.

No. A HECM reverse mortgage is a non-recourse loan. This means your heirs will never be personally liable for more than the home is worth at the time the loan is repaid. If the home sells for less than the outstanding loan balance, FHA insurance covers the shortfall. Your heirs walk away with no personal debt obligation.

A reverse mortgage reduces the equity in your home over time as the loan balance grows. This means there may be less equity — or in some cases no equity — remaining in the home for your heirs when the loan eventually comes due. This is an important planning consideration and one that should be discussed openly with your family and your estate planning advisor before proceeding.

We strongly encourage it. A reverse mortgage is a significant financial decision that will ultimately affect your heirs. Having an open conversation with your family — and including them in the advisor consultation if you choose — tends to lead to better outcomes for everyone involved. Our advisors are experienced in facilitating these conversations.

Federal regulations include protections for eligible non-borrowing spouses who are under 62 at the time the loan is originated. Under these protections, a qualifying non-borrowing spouse may be able to remain in the home after the borrowing spouse passes away, under specific conditions. This is an important detail that your Home Reverse advisor will explain thoroughly during your consultation.

The first step is a free, no-obligation consultation with one of our licensed advisors. You can request a consultation by filling out our online form, calling us directly, or scheduling a call at a time that works for you. There is no commitment involved — the consultation is simply a conversation to help you understand your options.

From application to closing, the process typically takes between 30 and 60 days. The timeline depends on factors including the appraisal schedule in your area, how quickly required documentation is gathered, and the complexity of your specific loan. Your Home Reverse advisor will keep you informed at every step and do everything possible to keep the process moving efficiently.

HUD counseling is an independent, federally mandated session with a HUD-approved housing counselor that all HECM borrowers are required to complete before their loan can be processed. The session typically lasts about 60 to 90 minutes and covers how reverse mortgages work, your rights and obligations as a borrower, and alternative options you may want to consider. The cost is typically modest — and in some cases free. Home Reverse will help you connect with an approved counselor.

The documentation required for a reverse mortgage is similar to any home loan. You will typically need: government-issued photo ID, proof of homeownership (property deed), recent property tax statements, proof of homeowner’s insurance, and documentation of any existing mortgage balances. Your advisor will provide a complete checklist specific to your situation.

Yes. Federal law provides a three-business-day rescission period after closing during which you can cancel the loan without penalty and without explanation. Before closing, you can withdraw your application at any time. Home Reverse will never pressure you to move forward before you are ready.

After closing, your funds are disbursed according to your chosen method — lump sum, line of credit, or monthly payments depending on your product. Your Home Reverse advisor remains available to answer questions throughout the life of your loan. You will receive regular statements showing your loan balance, and our team is always reachable if your circumstances change or you have questions.