Reverse Mortgage Solutions for Homeowners 62+
Access your home equity with an FHA-insured HECM reverse mortgage. Eliminate monthly mortgage payments, fund retirement expenses, or establish a growing line of credit for future needs—all while staying in your home.
Understanding Reverse Mortgages and HECM Loans for Seniors
A reverse mortgage, officially known as a Home Equity Conversion Mortgage (HECM) when FHA-insured, is a specialized loan program designed exclusively for homeowners aged 62 and older. Unlike traditional mortgages where you make monthly payments to the lender, a reverse mortgage allows you to convert a portion of your home equity into tax-advantaged funds without selling your home or making monthly principal and interest payments. This financial tool has helped hundreds of thousands of American seniors improve their retirement cash flow, eliminate existing mortgage payments, fund healthcare expenses, and maintain their independence while aging in place.
The reverse mortgage process works by allowing you to borrow against your home's equity, with the loan balance growing over time as interest accrues. You retain full ownership and title to your home, and the loan only becomes due when you permanently move out, sell the property, or pass away. At that time, the loan is typically repaid through the sale of the home, with any remaining equity going to you or your heirs. Importantly, reverse mortgages are non-recourse loans, meaning you or your heirs will never owe more than the home's value, even if the loan balance exceeds the property value—the FHA insurance covers any shortfall.
Reverse mortgages offer multiple disbursement options to fit different financial needs and goals. You can choose a lump sum payment (fixed rate only), monthly payments for a set term or for life, a line of credit that grows over time, or any combination of these options. The line of credit option is particularly popular because the unused portion grows at the same rate as the loan balance, providing increasing financial flexibility over time. This growth feature is guaranteed and continues for the life of the loan, making it a powerful planning tool for future healthcare costs, home modifications, or unexpected expenses in retirement.
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What Is a Reverse Mortgage?
A reverse mortgage is a loan that allows homeowners 62 and older to convert part of their home equity into cash. Unlike a traditional mortgage, you don't make monthly payments. Instead, the loan is repaid when you sell the home, move out permanently, or pass away.
Key Features
You Keep Title
You remain the homeowner and retain title to your home.
No Monthly Payments
No monthly principal and interest payments required.
Non-Recourse
You'll never owe more than your home's value.
Required Counseling
HUD-approved counseling ensures informed decisions.
Why ABF for Reverse Mortgages
Patient education, family-inclusive approach, and transparent guidance through every step.
Common Uses & Scenarios
How reverse mortgages help seniors achieve their retirement goals.
Example Scenario:
Homeowner with $200K mortgage balance, $500K home value
Benefit:
Eliminates $1,500/month mortgage payment, improves cash flow
Example Scenario:
Healthy 65-year-old planning for potential future care needs
Benefit:
Growing credit line provides financial security and peace of mind
Example Scenario:
Couple needing funds for home modifications and care assistance
Benefit:
Enables aging in place with dignity and independence
Example Scenario:
Downsizing to a more suitable home in retirement
Benefit:
Buy new home with significant down payment, minimal ongoing payments
Protections & Safeguards
Reverse mortgages include important protections for borrowers and their families.
- Non-recourse loan - you'll never owe more than the home's value
- Retain title and ownership of your home
- Required HUD counseling ensures informed decision-making
- Spouse protections for eligible non-borrowing spouses
- Right to remain in home as long as obligations are met
- FHA insurance protects against lender default
Property Taxes
Must continue paying property taxes on time
Homeowners Insurance
Maintain adequate homeowners insurance coverage
HOA Fees
Pay any homeowners association fees if applicable
Property Maintenance
Keep the home in good repair and condition
Occupancy
Use the home as your primary residence
Annual Certification
Complete annual occupancy certification
Is a Reverse Mortgage Right for You?
Get personalized guidance and see if a reverse mortgage fits your retirement plans.
Reverse Mortgage FAQ
Reverse Mortgage Readiness Check
See if a reverse mortgage is right for your situation.