A reverse mortgage is a loan available to homeowners aged 62 or older, allowing them to convert part of their home equity into cash without selling the home.

Homeowners must be at least 62 years old, live in the home as their primary residence, and have sufficient equity in the property.

The loan amount depends on your age, the value of your home, current interest rates, and the lending limits set by the FHA (for HECMs).

No. You retain ownership of your home, but you must continue to pay property taxes, homeowners insurance, and maintain the home.

The loan becomes due when the borrower sells the home, permanently moves out, or passes away.

No. As long as you live in the home and meet the loan requirements, you cannot be forced to repay the loan or move out.

Your heirs can choose to repay the loan (usually by refinancing or selling the home) or let the lender sell the home to recover the balance. Any remaining equity goes to your estate.

No. The money you receive is considered a loan advance, not income, so it’s generally not taxable.

Yes. A reverse mortgage for purchase (also called HECM for Purchase) allows you to buy a new primary residence using reverse mortgage proceeds.

Typical fees include closing costs, mortgage insurance premiums (for HECMs), servicing fees, and origination fees.

The main types include Home Equity Conversion Mortgages (HECMs), proprietary reverse mortgages, and single-purpose reverse mortgages.

A HECM (Home Equity Conversion Mortgage) is the most common type of reverse mortgage and is insured by the Federal Housing Administration (FHA).

Yes. You can repay the loan in part or in full at any time without a prepayment penalty.

You can choose a lump sum, monthly payments, a line of credit, or a combination of these options.

Risks include reduced home equity, the possibility of foreclosure if taxes or insurance aren’t paid, and impacts on eligibility for need-based government programs.