Education Center
Plain-English answers on eligibility, costs, payout choices, your responsibilities, and what it means for your family — with no sign-up required.
The Process
We review your home, your goals, and your options — and give you a written proposal. No cost, no obligation.
You meet with an independent HUD-approved counselor who confirms you understand the costs and obligations.
You sign the application and provide your documents: ID, income records, insurance, and property tax bills.
An FHA appraisal establishes your home’s value while title work and the financial assessment are completed.
You review and sign the final documents. Refinances include a 3-business-day right to cancel.
Funds are disbursed the way you chose. You receive statements and yearly occupancy certifications.
Side by Side
| Reverse Mortgage | HELOC | |
|---|---|---|
| Access home equity | Yes | Yes |
| Monthly mortgage payment required | No* | Yes |
| Unused line of credit can grow | Yes | No |
| Age minimum | 62 (55+ on some jumbo programs) | None |
| You still own the home | Yes | Yes |
*No monthly mortgage payment is required while you live in the home as your primary residence and keep property taxes, insurance, and HOA dues current, and maintain the home.
Myths and Facts
Myth: The bank owns your home.
Fact: You keep the title. A reverse mortgage is a loan secured by the home — you remain the owner and can sell at any time. Your heirs inherit the home after you pass, and they can keep it by paying off the loan balance or sell it and keep any remaining equity.
Myth: Your heirs are personally liable for the balance.
Fact: A HECM is non-recourse. When the home is sold to repay the loan, neither you nor your estate owes more than the home is worth. Heirs may also keep the home by paying off the balance.
Myth: It affects Social Security and Medicare.
Fact: Proceeds are loan advances, not income, so they generally do not affect Social Security or Medicare. Needs-based programs such as Medicaid or SSI can be affected — confirm with your advisor or tax professional.
A Home Equity Conversion Mortgage (HECM) is an FHA-insured loan that lets homeowners 62 and older convert part of their home equity into cash — without selling, giving up title, or taking on a monthly mortgage payment.
A reverse mortgage is no longer a 'loan of last resort.' Many homeowners use it as a planned tool to protect savings and improve retirement cash flow.
Reverse mortgages are widely misunderstood. Here are the most common myths and the facts behind them.
HECM eligibility is based on age, occupancy, property type, counseling, and a financial assessment — not a minimum credit score.
Plain-English definitions of the terms you'll see on a reverse mortgage proposal.
The amount available — called the Principal Limit — depends on three factors: the age of the youngest borrower, the expected interest rate, and the home's value.
All HECMs share the same age, insurance, and counseling rules — but adjustable and fixed-rate versions work very differently.
The HECM line of credit is one of the most powerful retirement-planning features available to homeowners 62+.
Adjustable-rate HECMs let you choose how proceeds are disbursed — and you can usually change the plan later.
A HECM for Purchase (H4P) combines a larger down payment with a reverse mortgage so you can right-size, relocate, or move closer to family without a monthly mortgage payment.
Private reverse mortgage programs serve higher-value homes and, in many states, homeowners starting at age 55 — a viable alternative when a HECM doesn't fit.
HECM costs are regulated by FHA. Most can be financed into the loan, which lowers what you pay at closing but increases the balance.
Since 2015, FHA requires lenders to confirm a borrower's willingness and capacity to keep up with property charges — protecting borrowers from losing their home later.
Both use home equity, but they behave very differently in retirement.
Planning ahead for a spouse and family should happen before closing so everyone understands their protections and choices.
Financial planners increasingly treat home equity as a strategic retirement asset. Senior home equity in the U.S. exceeds $12 trillion.
The home must be your principal residence and meet FHA minimum property standards.
The process is designed around education and protection, with independent counseling built in.
Gathering legible copies of these documents early keeps your loan moving smoothly.
Common Questions
Talk with a licensed specialist for a free, no-obligation review of your options.