WHAT IS A REVERSE MORTGAGE?
A reverse mortgage is a unique loan program that enables senior homeowners that are age 62 and older to use their equity without creating a monthly payment obligation. The majority of our Reverse Mortgage Programs are guaranteed by the U.S. Government.

A reverse mortgage provides financial security because you do not have to make payments or repay the loan as long as you occupy your home as a primary residence. Thus, the reverse mortgage program enables seniors that may be "real estate rich and cash poor" to unlock the financial potential in their homes, and let their homes work for them. Additionally, the reverse mortgage has no income or credit requirements to qualify.

In general, the reverse mortgage does not become payable until the senior homeowner no longer occupies the property as his or her primary residence.

Thus, the reverse mortgage is simply a loan against the borrower's principal residence. The borrower retains ownership of the home. If the borrower decides to sell the property, any funds in excess of the payoff amount belong to the borrower, as is the case with a regular mortgage or home equity loan.

WHO IS ELIGIBLE FOR A REVERSE MORTGAGE?
Reverse mortgages are available to homeowners that are age 62 and older. All persons listed on the deed to the property must be at least age 62. The borrower must occupy the property as his or her primary residence and all existing liens must be paid off at the time of settlement. Thus, the proceeds of the reverse mortgage are available to pay off any outstanding mortgages against the property. As an additional safeguard, the Department of Housing and Urban Development (HUD) requires that each potential reverse mortgage borrower be advised about the reverse mortgage program by an independent HUD-approved counseling agency. This counseling is free of charge to the borrower.