What Is a Reverse Mortgage?
A Home Equity Conversion Mortgage (HECM) — commonly called a reverse mortgage — is a federally insured loan that allows homeowners age 62 and older to convert a portion of their home equity into cash. Unlike a traditional mortgage where you make monthly payments to the lender, a reverse mortgage pays you.
You remain the owner of your home and can live there as long as you wish, as long as you continue to pay property taxes, homeowners insurance, and maintain the property. The loan balance becomes due when you sell the home, move out permanently, or pass away — at which point your heirs can sell the home, refinance, or pay off the balance.
HECM reverse mortgages are insured by the Federal Housing Administration (FHA), providing important protections for borrowers and their heirs.
Key Benefits
Eliminate your existing mortgage payment and free up cash flow for retirement. You only pay property taxes, insurance, and maintenance.
Money received from a reverse mortgage is generally not considered taxable income. Consult your tax advisor for your specific situation.
You retain ownership and can live in your home for as long as you wish. There is no requirement to ever move or sell.
You (or your heirs) will never owe more than the home is worth. If the loan balance exceeds the home value, FHA insurance covers the difference.
Receive funds as a lump sum, monthly payments, a line of credit, or any combination — whatever best suits your financial needs.
If you choose the line of credit option, the unused portion grows over time, giving you access to more funds in the future.
How Much Can You Receive?
The amount you can borrow depends on several factors:
| Factor | Impact |
|---|---|
| Your Age | Older borrowers qualify for a higher percentage of home value |
| Home Value | Higher home values mean more available equity (HECM limit: $1,209,750 in 2025) |
| Interest Rates | Lower interest rates increase the amount you can receive |
| Existing Mortgage | Any current mortgage must be paid off first from the reverse mortgage proceeds |
Eligibility Requirements
| Requirement | Details |
|---|---|
| Age | 62 years or older (both spouses if married) |
| Property | Must be your primary residence |
| Property Types | Single-family homes, 2-4 unit properties (owner-occupied), FHA-approved condos, manufactured homes (meeting FHA requirements) |
| Equity | Significant equity in the home (typically 50%+) |
| Financial Assessment | Ability to pay property taxes, insurance, and maintenance |
| Counseling | HUD-approved counseling session required before application |
| Credit | No minimum credit score (financial assessment required) |
Common Uses for Reverse Mortgage Proceeds
Pay off your existing mortgage and free up hundreds or thousands of dollars per month in retirement income.
Use proceeds for medical bills, long-term care, in-home assistance, or other healthcare needs.
Make modifications to your home for accessibility, safety, and comfort so you can age in place.
Create a steady stream of monthly income or maintain a growing line of credit as a financial safety net.
Why Work with Jason for Your Reverse Mortgage?
Reverse mortgages are one of the most misunderstood products in the mortgage industry. Many seniors miss out on this valuable tool because of outdated myths or bad information. I take the time to educate every client, walk through the numbers, and ensure a reverse mortgage truly makes sense for your situation before moving forward.
As a broker with access to 299+ lenders, I can compare HECM products from multiple sources to find you the best terms — including the lowest fees and highest proceeds available for your specific scenario.