CA wildfires

View claims guidance for borrowers affected by CA wildfires.

Back to Previous
1 Min. Read

What is a reverse mortgage?

Published
1 Min. Read
Placeholder

A reverse mortgage is a loan available only to senior homeowners* that converts a portion of home equity into usable cash. Borrowers are not required to make monthly mortgage payments, and the loan balance, including any unpaid interest, is not due until a maturity event brings the loan to an end.

Though borrowers may forgo mortgage payments for the life of the loan, they do have financial obligations associated with the loan. These obligations include interest that, if unpaid, accrues on the loan balance. The loan terms require that borrowers continue paying property taxes, fees, and hazard insurance. The property must be the borrower’s primary residence, and they must maintain the home. If the homeowner does not meet these loan obligations, then the loan will come due. Learn More

*Age requirements are determined by the type of reverse mortgage. For federally insured reverse mortgage borrowers, the minimum age is 62. For proprietary reverse mortgage borrowers, the minimum age may vary.

Related articles

Placeholder
What kind of fees are involved?

Apart from mandatory reverse mortgage counseling costs and FHA insurance (on certain loans only), the fees for a reverse mortgage are generally the same as those for a traditional forward

Read article from What kind of fees are involved?
Placeholder
How am I protected?

The largest misconception around reverse mortgages is that they’re dangerous. The truth is that these products are highly regulated by the US government and come with strict consumer protections that

Read article from How am I protected?
Placeholder
What are the borrower qualifications for a reverse mortgage?

To be eligible for a reverse mortgage, you typically need to be a homeowner 62+. However, Finance of America also has an exclusive range of reverse mortgage options available in

Read article from What are the borrower qualifications for a reverse mortgage?