To be eligible for a reverse mortgage, you must be at least 62 years old and own your home. You need sufficient equity to pay off any existing mortgage balances, and your home must be your primary residence. Minimal income and credit requirements also apply. Imagine living in your home without traditional monthly mortgage payments, or receiving monthly loan proceeds based on the years you’ve invested in your property.

A reverse mortgage is a specialized loan designed for homeowners aged 62 and older. It allows you to access part of your home’s value while maintaining the comfort and security of the home you’ve known for years. It’s your home—now you can put it to work for you. Borrowers retain full ownership and title to their home. You keep your home just as before, but now you may benefit from the equity you’ve built up over time.

The Home Equity Conversion Mortgage (HECM) is insured by the Federal Housing Administration (FHA), providing peace of mind. Your home and property are the only assets securing the loan. When the reverse mortgage becomes due, your heirs may choose to keep the home by paying off the outstanding loan balance or 95% of the home’s appraised value, minus customary closing costs and real estate commissions.

Repayment of a reverse mortgage on your primary residence is not required until the home is sold, the last borrower passes away or permanently leaves the home, or if loan terms are not met. Borrowers must keep the home in good condition, pay property taxes, and maintain homeowner’s insurance to avoid triggering repayment.

To protect borrowers, counseling from an independent HUD-approved third-party counselor is required before incurring any loan-related costs (other than the counseling fee). While reverse mortgage proceeds are not subject to personal income tax, I recommend consulting a tax professional regarding how these funds may impact government needs-based programs such as Medicaid or Medi-Cal.

Reverse Mortgage Facts

A reverse mortgage is a specialized loan for homeowners 62 and older. It allows older homeowners to access a portion of their home’s value while maintaining title and ownership. Proceeds from a reverse mortgage are not taxable as personal income, but borrowers should seek tax advice on how proceeds might affect government assistance programs. This is not a government grant—it is a loan repaid when the home is sold or the last borrower dies or permanently moves out. The loan applies only to your primary residence. HUD counseling from an independent, approved counselor is mandatory before any costs are incurred.

Reverse mortgages are secured by a mortgage on the home, and failure to comply with loan terms could result in foreclosure.

¹ I act as a Mortgage Broker only, not a lender or correspondent lender. I arrange loans through third-party providers but do not fund loans directly or make loan commitments.
² Certain conditions may cause the loan to mature and require repayment. Borrowers remain responsible for property taxes, insurance, and maintenance. Failure to meet these can result in loan repayment demands. Credit and property qualifications apply, and rates, fees, and terms vary by state.
³ Borrowers should seek professional tax advice regarding reverse mortgage proceeds.

Borrowers must continue to pay property taxes, homeowner’s insurance, and maintain the home.