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Understanding Reverse Mortgages — The Facts, Not the Myths

Reverse mortgages are powerful tools for homeowners 55+ who want to use their home equity to support retirement — but they're often misunderstood. On this page, you'll find a clear, jargon-free explanation of how they work.

What Is a Reverse Mortgage?

A reverse mortgage is a loan that allows homeowners 55+ to access a portion of their home equity without required monthly mortgage payments. The lender advances funds to you, and the loan is typically repaid when you move out, sell the home, or the last borrower passes away.

How It Works

  1. Meet age, equity, and property requirements.
  2. Complete required counseling.
  3. Program calculations determine access to funds.
  4. Choose a way to receive funds (lump sum, monthly, line of credit, or mix).
  5. Stay in the home while meeting ongoing obligations.
  6. Repayment happens when the loan matures (sale/move/passing).

Types of Reverse Mortgages

HECM (FHA-Insured)

Common reverse mortgage backed by FHA with strong consumer protections.

Proprietary (Jumbo)

Private programs that may fit higher-value homes or unique needs.

Eligibility Requirements

  • Age and residency requirements (typically 62+ for HECM).
  • Primary residence status.
  • Sufficient home equity.
  • Program/property eligibility.
  • Ability to maintain taxes, insurance, and home upkeep.

Find Out If You Qualify

Every situation is unique. A short conversation with Jay will help you see whether a reverse mortgage fits your goals — and if so, which program might be best.

Book a Free Qualification Call