Who’s a Good Fit for a Reverse Mortgage
Homeowners who plan to stay, want the equity conversation to start here instead of a new first mortgage they pay every month, and can keep up taxes, insurance, and the house.
HUD’s common reverse (HECM) is built for borrowers 62 or older who live in the home as their primary residence. That is a program rule, not a marketing cutoff I invented. Proprietary / jumbo reverse can have different overlays — I will not print a chart.
If you want a line of credit and you are fine making payments, start on HELOC. If you want a lump sum and you are fine replacing the first mortgage with a payment, start on cash-out refinance. If you just need a rate/term change, see rate-and-term refinance.
You keep the house as long as you meet the ongoing rules. Fail to pay taxes, insurance, or required upkeep and the loan can come due — same serious collateral risk as any mortgage against the house.
How a reverse works
On a regular first mortgage you pay the lender. On a reverse, the lender advances against equity and the balance usually grows over time as interest and fees add up. You do not make a required monthly mortgage payment. You do still pay property taxes, homeowners insurance, HOA if any, and you keep the home in reasonable condition. You live there as your primary residence.
Payout can be structured as a lump sum, a line of credit, monthly advances, or a mix — whatever the program and the guidelines allow. I will not print a payout estimate or a “you’ll get X% of value” number on this page. We run the actual numbers.
Heirs are not automatically stuck with a personal bill. The loan is typically repaid from the house. They can sell, refinance/pay off, or, when it is a non-recourse HECM, walk away if the balance is higher than the value. I will not turn that into a slogan.
Types (plain language)
HECM — FHA-insured Home Equity Conversion Mortgage. The usual path. Independent FHA-approved counseling is required before you close.
Proprietary / jumbo reverse — private programs for higher-value houses that do not fit HECM limits. Different overlays. I will not print a limit that will be stale.
Single-purpose — some states, cities, or nonprofits offer a narrow reverse for a stated use (repairs, taxes). Not always available in every market I serve.
Not all situations qualify. Not every house type qualifies.
Counseling and what I need
For a HECM, you complete a counseling session with an FHA-approved counselor who does not work for me. That is required. Then we apply, look at the house, title, and whether reverse is actually the right tool versus HELOC or cash-out.
A basic application on this page is the first step. You do not have to research HECM vs proprietary yourself. Shortly after you apply, I will tell you what documentation I need. Once I have those, we hop on a call.
Starting the application is typically a soft credit pull. A hard inquiry can come later if we move forward.
Related
HELOC (keep the first, tap equity, payments) → HELOC.
Cash-out refinance (new first, lump sum, payments) → cash-out refinance.
Rate-and-term (replace the first, little or no cash) → rate-and-term refinance.
All programs → loan programs.
Common questions
- Does the lender take the house?
- No. You stay on title while you meet the loan rules.
- Do I have to leave?
- No. The point is to stay. The loan comes due when you sell, permanently move out, or the last borrower dies — or if taxes/insurance/occupancy rules break.
- Is this a HELOC?
- No. A HELOC keeps your first mortgage and you make payments. See HELOC.
- Can I pay off my current mortgage with it?
- Often that is part of the use — the reverse pays off the existing first (and sometimes other liens) so you are not carrying that payment. Whether enough equity is there is a guidelines question, not a promise.
- Will I print your monthly income on this page?
- No. I will not print a rate or a payout estimate.
What I need from you
Apply on this page. Then we look at the house, how you hold title, occupancy, and whether reverse is the right box. Talk to me first if you want a second set of eyes before you apply.
Purchase, refinance, and most programs: Apply opens my Bevri application. Prefer to talk first? Use Talk to Michael. I’ll walk you through the program and the guidelines.