A Reverse Mortgage, also known as a Home Equity Conversion Mortgage (HECM), allows homeowners aged 62 or older to convert their home equity into tax-free cash without needing to sell their home or make monthly mortgage payments. Borrowers must maintain their home, pay property taxes, insurance, and other related costs. Learn more in our reverse mortgage page or HUD’s HECM overview.
Common situations for Reverse Mortgages include:
To qualify, you must:
Find counseling details at HUD’s counseling page or our reverse mortgage page.
No, you remain the homeowner. A Reverse Mortgage is a loan secured by your property, much like a traditional mortgage. You retain full ownership and title of your home, as long as you adhere to loan terms, including maintaining the property and staying current on taxes and insurance. See our mortgage basics.
Loan amounts are primarily based on:
Explore this in our mortgage calculators or HUD’s HECM program page.
Yes, a Reverse Mortgage for Purchase allows homeowners aged 62+ to buy a new primary residence and finance it with a Reverse Mortgage. This means no monthly mortgage payments, although property taxes, insurance, and home maintenance remain your responsibility. Learn more at HUD’s HECM facts.
Repayment occurs when the last borrower permanently moves out of the home, sells the property, or passes away. At that time, the loan, including principal, interest, and fees, is due. Heirs can sell the home or refinance to keep the property. See our refinance guide.
No. Reverse Mortgages are non-recourse loans, meaning heirs will never owe more than the home’s market value. If the loan balance exceeds the home’s value, FHA insurance covers the shortfall. Check our mortgage basics.
Yes. After the loan is repaid, any remaining equity in your home passes to your heirs. They can repay the Reverse Mortgage balance by refinancing or selling the property, keeping any remaining proceeds. Explore repayment options in our refinance guide.
You maintain ownership as long as you meet loan conditions. However, failure to maintain the property or keep taxes and insurance current can result in loan default, potentially leading to foreclosure. Learn more in our mortgage basics.
Money Well Lending has helped seniors comfortably leverage their home equity for retirement needs in communities ranging from Vancouver, WA, and Sun City, AZ, to Boise, ID, and Fort Myers, FL, providing solutions that help retirees maintain their independence and financial flexibility. See our loan programs.