Frequently Asked Questions

• All borrowers must be 62 or older.
• The home used as collateral for the Reverse Mortgage must be your principal residence and must meet standards set by the United States Department of Housing and Urban Development (HUD)† on property type and condition. There may be repairs required to be completed in order to meet this standard.  Some repairs are required to be completed prior to loan closing.
• Eligible property types include single-family homes, manufactured homes meeting certain criteria, 2-to-4-unit properties, townhouses and condominiums that are approved by the Federal Housing Administration (FHA). Co-ops do not qualify.
• Note: These are only the basic requirements.  Other qualifications & requirements apply.

You may still be eligible for a reverse mortgage! Many people refinance their existing mortgage(s) with a reverse mortgage in order to greatly reduce their monthly bills. Loan proceeds from your reverse mortgage would be used to pay off any existing mortgage(s). This means the balance of your existing mortgage(s) will be added to the balance of your reverse mortgage.  This eliminates your monthly mortgage payment on your principal residence.

With a reverse mortgage the unused Line of Credit grows.  In most cases with a HELOC the Line of Credit does not and requesting an increase often requires full credit application, appraisal, income verification with other associated fees. 

Also, with a HELOC, you must make mandatory monthly principal and interest payments on the balance while you live in the home. With a reverse mortgage you can pay as much or as little as you like each month toward principal and interest or make no monthly loan payment at all.

As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.

The loan proceeds from a reverse mortgage generally do not affect regular Social Security or Medicare benefits. However, Medicaid and Supplemental Security Income (needs-based benefits) may be impacted. Please contact a financial professional or government benefits specialist about your particular situation.

Yes! With the reverse mortgage for purchase loan, qualified borrowers can use their loan proceeds to buy a home that better suits their needs and lifestyle.

Yes, however, most of the fees associated with a reverse mortgage can be financed through your loan, so there’s no immediate out-of-pocket cost. The exception being a fee for government-required reverse mortgage counseling.  The costs are added to the principal / loan amount and paid along with the accrued interest when the loan becomes due. These fees may include an origination fee, closing costs, a mortgage insurance premium (required for HECM loans) and a monthly servicing fee among other fees depending on the loan product you choose.

 The loan becomes due and payable in full when one of the following occurs:

• When there is a “maturity event” — when the home is sold, or the borrower or qualified non-borrowing spouse no longer occupies the home as their principal residence (e.g., passes away, moves out)
• Property taxes or Hazard Insurance goes unpaid.
• Failure to maintain the property which results in deterioration outside of what is considered the normal wear and tear.