Brooke Manley NMLS #133917
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Reverse Mortgage

A loan for people who are 62 or older, and in some cases 55 or older. It can turn equity into payments or a line of credit, or help buy a different home.

Staying in the Home While You Use Equity

The common government-insured reverse mortgage is called a HECM. It is usually for homeowners who are 62 or older and who live in the home. Some proprietary reverse mortgages, which are not insured the same way, can start at 55. Ask which one is actually available before you plan on an age.

The loan can pay you a lump sum, a monthly amount, or a line of credit, depending on the program. You keep the title. You still pay property taxes, homeowners insurance, and the cost of keeping the home in reasonable shape. If those obligations are missed, the loan can be called due.

A reverse mortgage can also be used to buy a different home. That version is often called a HECM for Purchase. You bring a share of the price to closing, and the loan covers the rest, within the program's limits. This page does not state that share.

A HECM requires a session with an independent counselor before you apply. The counselor does not work for the lender. Use that meeting to talk through what happens to the home later, including what heirs would need to do.

An older couple relaxing on a gray sofa in a bright kitchen.
Staying in the home
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In Everyday Language

A reverse mortgage is for homeowners who are 62 or older. In some cases the age can be 55 or older. Instead of a payment you make every month in the usual way, the loan can pay you, give you a line of credit, or both, using equity in the home. You still own the home. You still take care of taxes, insurance, and upkeep. It is not free money, and it is not the right tool for every older homeowner.

Equity You Can Use and Still Stay

A reverse mortgage can turn equity into payments or a line of credit, or help buy a different home. You keep the title. These photos are homes and families, not listings, and they are not an offer.

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A conversation with family
The front door of a white house, with a stone column and a walkway.
The house you already own

Ways a Reverse Mortgage Can Work

62 or older is the usual age. 55 or older applies only in some cases. You still pay taxes, insurance, and upkeep.

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  • A living room with a fireplace, built-in shelves, and a view into the kitchen.

    Stay and Use Equity

    You keep the title. The loan can pay a lump sum, a monthly amount, or a line of credit, depending on the program. It is not free money.

  • A family on a sofa with a dog lying on the rug in front of them.

    Age Comes First

    The common age is 62 or older. Some programs allow 55 or older. Ask which one is actually available before you plan on an age.

  • Three people reviewing papers and a notebook around a low table.

    Taxes and Insurance Still Come Due

    You still pay property taxes, homeowners insurance, and the cost of upkeep. Missing those can put the loan in trouble.

  • A white brick house with a teal front door, a stone column, and a curved stone walk.

    Buying a Different Home

    A purchase reverse asks you to bring a share of the price to closing. This page does not state that share.

  • A man in a white shirt explaining something to two people seated across from him.

    Counseling Before You Apply

    A HECM requires a session with an independent counselor. The counselor does not work for the lender.

A shingle house with a stone walk, white columns, and an orange front door.

Who It Is Great For

  • Homeowners 62 or older, and in some cases 55 or older, who want to use equity while they stay in the home
  • Older buyers who want to purchase a different home with a reverse mortgage
  • People who will complete the counseling the program asks for
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Who It May Not Fit

  • Homeowners younger than the age the program allows
  • People who plan to move soon or who cannot keep up taxes and insurance

Key Requirements

  1. A woman at a white desk, working at a computer with a notebook in front of her.

    01

    Credit

    A credit and property-charge history a lender can review. Paying taxes and insurance on time matters.

  2. A family and a white dog sitting on the front steps of a gray house.

    02

    Down Payment

    On a home you already own, the loan is based on age, the home's value, and equity. A purchase reverse asks you to bring a share of the price to closing.

  3. A woman working at a desk with two monitors beside a window.

    03

    Debt-to-Income

    The review looks at whether you can keep the home, including taxes and insurance, more than at a traditional monthly loan payment.

These notes describe topics a lender often reviews. They are not minimums or a promise of approval. Age rules are the ones supplied for this page. Other program details are not listed here.

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What to Remember

  • Age 62 or older, and in some cases 55 or older
  • You keep the title and you still have responsibilities for the home
  • It can stay with the home you own, or help buy a different home
  • Counseling is part of many reverse mortgages
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Pros

  • A way for eligible older homeowners to use equity without selling
  • You can stay in the home when you meet the loan's obligations
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Cons

  • Equity goes down as the loan balance goes up
  • Heirs may need to repay the loan or sell the home

How It Usually Goes

  1. 1

    The gable of a blue house with white trim and an arched window.

    Confirm the Age and the Home

    The common age is 62 or older. Some programs allow 55 or older. Ask which one is actually available.

  2. 2

    Two people talking in chairs by a window, one taking notes.

    Complete Counseling

    Many reverse mortgages require a session with an independent counselor before you apply.

  3. 3

    Three people at a table, reviewing papers and holding pens.

    Review Taxes, Insurance, and Upkeep

    Falling behind on those can put the loan in trouble even if you are not making a principal payment.

  4. 4

    A family of four standing at a white picket gate in front of a cream house.

    Decide With Your Family

    Talk through what happens to the home later. A loan officer can explain the payoff, not the family decision.

The gable of a blue house with white trim and an arched window.

1 of 4. Confirm the Age and the Home

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Questions People Ask

Do I Give Up Ownership?

No. You keep the title. The loan is secured by the home, the same idea as other mortgages.

Is 55 Always Enough?

No. 62 or older is the usual age. 55 or older applies only in some cases. Ask before you plan on it.

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