Stay in your home, keep the title, and convert part of the equity you've built into cash — generally tax-free.
Whether seeking money to finance a home improvement, pay off a current mortgage, supplement retirement income, or pay for healthcare expenses, many older Americans are turning to reverse mortgages. They allow older homeowners to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills.
In a regular mortgage, you make monthly payments to the lender. In a reverse mortgage, you receive money from the lender and generally don't have to pay it back for as long as you live in your home. The loan is repaid when you die, sell your home, or no longer live there as your principal residence. Reverse mortgages help homeowners who are house-rich but cash-poor stay in their homes and still meet their financial obligations.
To qualify for most reverse mortgages, you must be at least 62 and live in your home. The proceeds are generally tax-free, and many reverse mortgages have no income restrictions.
Offered by some state and local government agencies and nonprofits. Very low costs, but available only for one purpose specified by the lender — like home repairs or property taxes — and generally for low-to-moderate incomes.
Home Equity Conversion Mortgages are backed by the U.S. Department of Housing and Urban Development (HUD) — the most common type of reverse mortgage.
Private loans backed by the companies that develop them — an option for higher-value homes beyond HECM limits.
A reverse mortgage is a big decision — we'll walk you and your family through every option, no pressure.