Reverse Mortgage

Access Home Equity Without a Traditional Monthly Mortgage Payment

A reverse mortgage allows eligible homeowners age 62 and older to access a portion of their home equity while continuing to live in the home.

Depending on the program, funds may be available as a lump sum, line of credit, monthly payments, or a combination of options, while the loan balance is typically repaid when the home is sold, the borrower moves out permanently, or another repayment event occurs.

Reverse mortgage eligibility, age requirements, available proceeds, fees, interest rates, property standards, counseling requirements, and repayment terms vary by program and borrower scenario.

How a Reverse Mortgage Works

Eligibility & Property Review

The lender reviews borrower age, property type, available equity, occupancy, and other program requirements to determine whether a reverse mortgage may be available.

Equity & Proceeds Calculation

The amount available depends on factors such as borrower age, home value, existing mortgage balance, interest rates, and program guidelines.

Funds Are Accessed

Eligible proceeds may be available through options such as a lump sum, line of credit, monthly payments, or a combination of methods.

Repayment Occurs Later

The loan is generally repaid when the home is sold, the borrower permanently leaves the property, or another repayment event occurs under the loan terms.

Reverse Mortgage Requirements to Expect

Age & Occupancy Requirements

At least one eligible borrower generally must meet the program’s minimum age requirement, and the home typically must be the borrower’s primary residence.

Available Home Equity

The lender evaluates the property value, existing mortgage balance, and available equity to determine potential proceeds.

Financial & Property Review

The lender may review income, credit, property charges, taxes, insurance, and the condition of the home to confirm program eligibility.

Counseling & Loan Terms

Reverse mortgage programs may require independent counseling, and borrowers remain responsible for property taxes, insurance, maintenance, and other applicable obligations.