Understanding Reverse Mortgages

A reverse mortgage is a special type of loan available to homeowners aged 62 and older (and in some cases, 55+). It lets you tap into your home’s equity without having to make monthly mortgage payments. Instead of you paying the bank, the bank pays you—through a lump sum, monthly payments, a line of credit, or a mix of these options.


The best part? You still own your home and can live in it for as long as you like, as long as you stay current on property taxes, homeowner’s insurance, and basic upkeep.


Many seniors use a reverse mortgage to boost their retirement income, handle unexpected costs, or simply enjoy more financial freedom. It’s a smart way to turn your home into a source of stability and peace of mind during retirement.

What is a HECM?

 A Home Equity Conversion Mortgage (HECM) is the most widely used type of reverse mortgage—and it’s backed by the Federal Housing Administration (FHA). That means the loan is insured by the government, offering added peace of mind and protection for borrowers.


HECMs offer flexible ways to receive your funds, including a lump sum, monthly payments, or a line of credit that can grow over time. Plus, they include important safeguards like mandatory counseling, so you’ll fully understand the details before moving forward.



If your home falls within FHA loan limits and you're looking for the security of a government-insured option, a HECM could be a smart choice.

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What is a Jumbo Reverse Mortgage and How is it Different from a HECM?

A Jumbo Reverse Mortgage is designed for homeowners with high-value properties that exceed the FHA loan limits. Unlike a HECM, which is backed by the government, Jumbo reverse mortgages are offered by private lenders and are not FHA-insured.


Here are some key differences between a Jumbo Reverse Mortgage and a HECM:


  • Higher Loan Limits – Jumbos are ideal for luxury or high-value homes, allowing access to significantly more equity than a HECM.
  • No Mortgage Insurance – Since these loans are privately funded, there’s no FHA mortgage insurance premium required.
  • More Flexible Age Requirements – Some lenders allow borrowers as young as 55 to qualify (compared to 62 for HECMs).
  • Limited Payout Options – Jumbos typically offer lump-sum payouts, with fewer options for lines of credit or monthly payments.


A Jumbo Reverse Mortgage can be a great solution for homeowners who want to unlock more equity from their higher-value homes—without the restrictions that come with government-insured programs.

Who Qualifies for a Reverse Mortgage?

Qualifying for a reverse mortgage is often easier than many people expect. To be eligible, you’ll need to:


  • Be at least 62 years old (some programs allow for 55+ ask me!)
  • Own your home outright or have substantial equity
  • Live in the home as your primary residence
  • Stay current on property taxes, homeowners insurance, and basic upkeep


Unlike traditional mortgages, reverse mortgages don’t have strict credit score or income requirements. However, lenders will assess your overall financial situation to ensure you can continue to meet the responsibilities of homeownership.


If you're married, your spouse may also be protected by the loan—even if they’re under 62—helping to ensure long-term security for both of you.

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Safeguards in Place for Seniors With a Reverse Mortgage

Reverse mortgages are designed with several built-in protections to help ensure seniors make informed choices and feel secure in their homes:


  • Mandatory Counseling – Before moving forward, every borrower must complete a session with an independent, HUD-approved counselor to fully understand how the loan works.
  • Non-Recourse Loan – You or your heirs will never owe more than the value of the home, even if the market declines.
  • You Keep Ownership – As long as you stay current on property taxes, insurance, and routine maintenance, the home remains yours.
  • Spouse Protections – If your spouse is a co-borrower or qualifies as an eligible non-borrowing spouse, they can continue living in the home even after you pass away.
  • Government Oversight – HECMs are federally insured and closely regulated to ensure transparency and borrower protection.


These safeguards are in place to provide peace of mind and help you make confident, informed decisions about your financial future.

Reverse mortgages are designed to give you additional financial resources—not take resources away. With the right guidance, this loan can be a powerful tool for a secure and comfortable retirement.

I'd be happy to speak with you and/or your loved one to see if a reverse mortgage might be a good option for you.