Reverse Education Center

Understanding Reverse Mortgage

What is a reverse mortgage loan? How do reverse mortgages work? Is a HECM the same as a reverse mortgage? How are they different? Here’s where you’ll learn the ABCs of reverse mortgage from the basics to how they compare with other financial products.

Education Center Topics
With a reverse mortgage, you — not the lender, own and control your home. You can't be kicked out so long as you uphold the terms of the loan. As with a traditional forward mortgage, the lender simply puts a lien on the property to ensure the loan will be repaid. Learn More
No. A reverse mortgage is a “non-recourse” loan, which means that if you default on the loan, or if the loan cannot otherwise be repaid, the lender can only enforce the debt through the sale of the property and cannot look to your other assets (or your estate’s assets) to meet any outstanding balance. If the loan balance is higher than what the home is worth, your heirs will not be responsible for paying the difference when the home is sold to repay the balance.
Eligibility for a reverse mortgage typically requires the homeowner to be at least 62 years old for home equity conversion mortgages (HECMs), have substantial equity in their home, and the property must be the borrower’s primary residence.
Eligible property types for reverse mortgages include single-family homes, FHA-approved condominiums, and certain types of manufactured homes.
The traditional reverse mortgage is also known as the Home Equity Conversion Mortgage (HECM), which is federally insured. Companies may also offer proprietary reverse mortgages with certain advantages to a HECM, such as lower age requirements for borrowers or increased loan amounts.
Yes, reverse mortgages are available in all states, but specific rules and regulations can vary, affecting the availability of different types of loans and the terms offered.
A non-borrowing spouse is the spouse of the reverse mortgage borrower who is not named as a borrower on the loan. Spouses may not be on the loan for various reasons, such as not meeting the age requirement or for other financial planning reasons. If the borrowing spouse passes away, eligible non-borrowing spouses can remain in the home without repaying the loan, provided specific conditions are met, such as maintaining the home as their primary residence and keeping up with property taxes and insurance. To be considered eligible, non-borrowing spouses must be listed as such on the mortgage.

The Basics

People learning about home equity conversion mortgages (HECM)
What is a home equity conversion mortgage (HECM)?

A HECM is a reverse mortgage, but not all reverse mortgages are HECMs. Learn how they are different.

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Learning about reverse mortgage eligibility requirements
Reverse mortgage eligibility requirements

Understanding the eligibility requirements of a reverse mortgage can is the first step to deciding if these financial vehicles are right for you.

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Who owns your home with a reverse mortgage? This guy knows.
Who owns your home with a reverse mortgage loan?

Simple. Reverse mortgage borrowers retain title and ownership of their homes. Here's more about how it works.

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How Reverse Mortgages Work

Man learning about a reverse mortgage line of credit
How does a reverse mortgage line of credit work?

A line of credit in a reverse mortgage can offer multiple advantages to borrowers. Here's how they work and how they differ from other line of credit products.

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two people learn about title and reverse mortgage
Title and reverse mortgages: what you need to know

When you take a reverse mortgage, the title to your home remains in your name and you retain ownership of your home. Here's how it works.

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How does a reverse mortgage work?

A reverse mortgage allows an eligible borrower to access their home equity. How does a reverse mortgage work? Here's what you need to know.

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Comparing Loans

Traditional vs. reverse mortgage: a comparison

A traditional mortgage and a reverse mortgage have some similarities, but function quite differently. Here is an explanation of how each works and what that means for potential borrowers.

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