Loan program · Home Equity
Reverse Mortgage
A reverse mortgage may allow eligible older homeowners to access home equity without requiring traditional monthly principal and interest mortgage payments, subject to program requirements. Depending on the program and borrower eligibility, reverse mortgage financing may potentially be used to purchase an eligible home, refinance an eligible existing home, or access available home equity. The balance grows over time as interest accrues, and the loan becomes due when the last borrower permanently leaves the home, sells, or fails to meet loan obligations. You remain responsible for property taxes, homeowners insurance, any HOA dues, and property maintenance. A reverse mortgage is not appropriate for everyone, and eligibility depends on program requirements and underwriting review.
Who it is designed for
- Eligible older homeowners with substantial equity, subject to program requirements
- Eligible older buyers purchasing a home with a reverse purchase program
- Homeowners exploring alternatives to a required monthly mortgage payment
Eligible occupancy types
- Primary residence
Down payment or equity
Not applicable for a standard reverse mortgage. Purchase reverse programs require a substantial buyer contribution.
Major benefits
- No required monthly principal and interest payment while obligations are met
- Several disbursement options depending on the program
- HUD counseling is required, which adds an independent review step
Important considerations
- The loan balance grows over time, reducing equity left to heirs
- Taxes, insurance, HOA dues and maintenance remain your responsibility
- Fees and insurance premiums can be significant
- Moving out of the home permanently triggers repayment
How qualification generally works
- Age and occupancy requirements
- Financial assessment of ability to pay taxes and insurance
- Completion of HUD approved counseling
- Appraisal on the property
Documents commonly requested
- Photo ID and Social Security number for each borrower
- Most recent pay stubs covering a full 30 day period, if you receive W2 wages
- W2s and/or federal tax returns for the most recent years requested
- Two months of asset statements for accounts used for down payment and reserves
- Current mortgage statement, homeowners insurance and property tax information on properties you own
- Explanations for large or non payroll deposits
- Certificate of completion from HUD approved counseling
Frequently Asked Questions
Related programs and next steps
Considering reverse mortgage?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.