Reverse Mortgages & Retirement Housing
Understand how housing wealth, mortgage debt, cash flow, ongoing obligations, and alternatives may fit a retirement plan.
By Holly Luca | Mortgage Strategist | LendingProf | Loan Factory, Inc. | NMLS #586712. Licensed in CA, FL, IA & TX.
What is a HECM reverse mortgage?
A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage generally available to homeowners age 62 or older who meet program, property, counseling, financial-assessment, equity, and occupancy requirements. Proceeds may be offered through permitted payment options depending on the transaction and program rules.
Do I keep ownership of my home?
The borrower retains title, subject to the reverse-mortgage lien and loan terms. The loan commonly becomes due when the last borrower sells, permanently moves out, or dies, subject to applicable rules and eligible non-borrowing-spouse protections.
What expenses continue?
- Property taxes and homeowners insurance
- Flood, windstorm, or other required coverage
- Home maintenance and repairs
- Homeowners association charges when applicable
- Other property charges required by the loan
Failure to meet these obligations may cause the loan to become due and payable and can result in foreclosure.
What alternatives should I compare?
Depending on goals and qualification, alternatives may include a traditional refinance, HELOC, home-equity loan, sale and downsizing, budget changes, family support, local assistance, or no new loan. Compare payment requirements, costs, rate structure, access to funds, expected time in the home, and effects on heirs.
Can I qualify if I still have a mortgage?
Possibly. Existing mortgages and required liens generally must be paid at closing using reverse-mortgage proceeds or other funds. Available proceeds depend on age, value, liens, rates, program limits, and the financial assessment.
Schedule a Retirement Housing ConversationImportant reverse-mortgage information
HUD-approved counseling is generally required for a HECM. This page is educational and not a personalized recommendation. Loan proceeds may affect eligibility for certain needs-based benefits; consult the appropriate tax, legal, estate, or benefits professional for advice within their scope.
Download a practical checklist
Use these educational checklists to organize questions and documents before a mortgage conversation.