FAQs & Resources

The following questions are not HUD (Housing & Urban Development) or FHA (Federal Housing Administration) originated or approved nor are they originated or approved by any other federal government agency.

Whether you’ve heard about a “HECM Mortgage,” “Home Equity Conversion Mortgage,” “HECM Reverse Mortgage,” “HECM Loan,” or “Reverse Mortgage,” it’s all the same thing: the FHA-insured loan program designed to let homeowners age 62 and older tap into their home equity and get cash to use as they wish. Unlike a traditional forward mortgage—where the borrower must begin repaying the loan right away—you don’t have to repay funds received through a reverse mortgage until after the final borrower no longer lives in the home, or if you fail to meet the terms of your loan, such as paying your property taxes and insurance and maintaining your home. There are no monthly mortgage payments required.

The short answer is, it depends. There are several variables that determine just how much of the home value you’ll be able to access. For instance, the borrowing limit (known as the “principal limit”) can depend on factors such as your age, home value as determined by an appraisal, the amount of outstanding loans against your house, and current interest rate.

The homeowner always maintains the title and ownership of their home, just like a traditional mortgage. You’ll have to meet your loan obligations by keeping current with property taxes, homeowner’s insurance, and home maintenance, as you do now

*This advertisement does not constitute financial advice. Please consult a financial advisor regarding your specific situation. Borrowers should seek professional tax advice regarding reverse mortgage loan proceeds.

Resources

  • AARP free information on reverse mortgages
    Phone: 1-800-209-8085
  • The Consumer Financial Protection Bureau (CFPB) Consumer Lookup
    http://www.nmlsconsumeraccess.org/
  • Housing Counseling Clearinghouse
    Phone: 1-800-569-4287
  • The Eldercare Locator: Local Resources for Older Adults
    http://www.eldercare.gov
    Phone: 1-800-677-1116
  • Federal Trade Commission (FTC) to report possible fraud
    http://www.ftc.gov
    Phone: 1-877-FTC-HELP (1-877-382-4357)
  • National Council For Aging Care
    http://www.aging.com/
    Phone: 1-877-664-6140