Reverse Mortgages for Seniors

A Reverse Mortgage is a loan to a senior (62 or older), on which the loan balance increases over time, but need not be repaid until the borrower dies, sells the home or moves out of the home. The role of a Reverse Mortgage is to allow the senior to use the equity in their home while they are still alive. Virtually all Reverse Mortgages originated today are insured by the Federal Housing Administration. This insures the borrower that any payments due from the lender will be made to the borrower, even if the lender fails. To be leigible for a Reverse Mortgage, the senior must own a home, have substantial equity, and occupy the home as a primary residence. The home equity can be received in a lump sum, over a specific term,  monthly over life, a line of credit, or some combination.

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