Reverse Education Center

Understanding Reverse Mortgage

What is a reverse mortgage loan? How do reverse mortgages work? Is a HECM the same as a reverse mortgage? How are they different? Here’s where you’ll learn the ABCs of reverse mortgage from the basics to how they compare with other financial products. And when you’re ready to get more personal, one of our qualified advisors will be ready to talk.

Education Center Topics
With a reverse mortgage, you — not the lender — own and control your home. You can't be removed from the home so long as you uphold the terms of the loan. As with a traditional forward mortgage, the lender simply puts a lien on the property to ensure the loan will be repaid. Learn More
No. A reverse mortgage is a “non-recourse” loan, which means that if you default on the loan, or if the loan cannot otherwise be repaid, the lender can only enforce the debt through the sale of the property and cannot look to your other assets (or your estate’s assets) to meet any outstanding balance. If the loan balance is higher than the home’s value, your heirs will not be responsible for paying the difference when the home is sold to repay the balance.
Eligibility for a home equity conversion mortgage (HECM), or federally insured reverse mortgage, requires the homeowner to be at least 62 years old and have substantial equity in their home.
Additional HECM eligibility requirements include:
• Living in the home as a primary residence
• Undergoing counseling with a HUD-approved, third-party counselor
• A financial assessment conducted by the lender
Proprietary reverse mortgage eligibility requirements, including age minimums, may vary by lender and state. Learn More
Eligible property types for reverse mortgages include single-family homes, FHA-approved condominiums, and certain types of manufactured homes.
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM). These mortgages are federally insured and regulated by the U.S. Department of Housing and Urban Development (HUD). Individual lenders may also offer proprietary reverse mortgages available in certain states. Because proprietary loans are not federally-insured, the lenders have more flexibility to set their terms including lower borrower age requirements or higher loan amounts. Reverse mortgages are available in all states, but specific rules and regulations can vary, affecting the availability of different types of loans and the terms offered.
Yes, reverse mortgages are available in all states, but specific rules and regulations can vary, affecting the availability of different types of loans and the terms offered.
A non-borrowing spouse is the spouse of the reverse mortgage borrower who is not named as a borrower on the loan. Spouses may not be on the loan for various reasons, such as not meeting the age requirement or for other financial planning reasons. If the borrowing spouse passes away, eligible non-borrowing spouses can remain in the home without repaying the loan, provided specific conditions are met, such as maintaining the home as their primary residence and keeping up with property taxes and insurance. To be considered eligible, non-borrowing spouses must be listed as such on the mortgage.

The Basics

People learning about home equity conversion mortgages (HECM)
What is a home equity conversion mortgage (HECM)?

A HECM is a reverse mortgage, but not all reverse mortgages are HECMs. Learn how they are different.

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Learning about reverse mortgage eligibility requirements
Reverse mortgage eligibility requirements

Understanding the eligibility requirements of a reverse mortgage can is the first step to deciding if these financial vehicles are right for you.

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Who owns your home with a reverse mortgage loan?

Simple. Reverse mortgage borrowers retain title and ownership of their homes. Here's more about how it works.

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How Reverse Mortgages Work

Man learning about a reverse mortgage line of credit
How does a reverse mortgage line of credit work?

A line of credit in a reverse mortgage can offer multiple advantages to borrowers. Here's how they work and how they differ from other line of credit products.

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two people learn about home title and a reverse mortgage
Title and reverse mortgages: what you need to know

When you take a reverse mortgage, the title to your home remains in your name and you retain ownership of your home. Here's how it works.

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A couple reading how a reverse mortgage works
How does a reverse mortgage work?

A reverse mortgage allows an eligible borrower to access their home equity. How does a reverse mortgage work? Here's what you need to know.

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Comparing Loans

A couple who have taken a HomeSafe Second rather than a HELOC to do some home upgrades.
HomeSafe Second vs a home equity line of credit (HELOC)

Learn how our proprietary second-lien reverse mortgage product differs from the more commonly understood HELOC.

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Sisters discussing the differences between traditional mortgages and reverse mortgages
Traditional vs. reverse mortgage: a comparison

A traditional mortgage and a reverse mortgage have some similarities, but function quite differently. Here is an explanation of how each works and what that means for potential borrowers.

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