A reverse mortgage enables homeowners 62 and older to convert home equity into tax-free cash without selling their home. A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash.
Stay in your home: The key to a Reverse Mortgage/Home Equity Conversion Mortgage (HECM) it that it enables you to live in your home for as long as you want with absolutely no monthly mortgage payments (borrowers must remain current on their property taxes, homeowner’s insurance and HOA dues) and – in many cases – you can also get access to money to use for any purpose. Low Risk: Unlike a home equity loan, with a Reverse Mortgage/Home Equity Conversion Mortgage (HECM) your home can not be taken from you for reasons of non-payment – there are no payments on the loan until you permanently leave the home. However, you must continue to pay for upkeep and taxes and insurance on your home. Tax Free: As a Reverse Mortgage/Home Equity Conversion Mortgage (HECM) is a loan, the money from it is typically tax-free, whether you receive it as fixed income or in a lump sum.
Starting Your Reverse Mortgage Process
Homeowner seeks counseling from a local HUD-approved counseling agency, or a national counseling agency, we will supply you with a list of third-party-approved local and national counseling agencies. Counseling is required for all reverse mortgages and may be conducted face-to-face or by telephone.