Loans / Reverse Mortgages
Reverse Mortgages:
Retirement Income From Your Home's Equity
A reverse mortgage lets homeowners 62 and older turn home equity into cash with no monthly mortgage payment. You keep living in the home and keep paying property taxes, insurance and upkeep. The loan is repaid when you sell, move out or pass away. The most common type is the government-insured HECM (Home Equity Conversion Mortgage).
Reviewed by Kevin Danowitz, NMLS #924478
Last updated November 5, 2026
How does a reverse mortgage work?
A regular mortgage balance goes down as you make payments. A reverse mortgage works the other way: the lender pays you, and the balance grows over time.
When the last borrower sells, moves out or passes away, the loan is repaid, in most cases by selling the home or refinancing it. HECM loans are non-recourse, so you or your heirs never owe more than the home is worth.
How can I receive the money?
| Option | How it pays |
|---|---|
| Lump sum | One payment at closing |
| Line of credit | Draw what you need, when you need it |
| Monthly payments | A fixed amount each month |
| Combination | Any mix of the three |
What are reverse mortgage requirements?
| Requirement | HECM reverse mortgage |
|---|---|
| Age | 62 or older |
| Home | Your primary residence |
| Ongoing costs | Property taxes, homeowners insurance and maintenance stay current |
| Counseling | A HUD-approved counseling session before you apply |
| Credit | Reviewed, but good credit is not required; past issues can mean part of your taxes and insurance is set aside up front |
What are the drawbacks?
A reverse mortgage draws down your equity, so less is left to your heirs. Kevin recommends making the decision together as a family. You can also make payments at any time to slow the balance growth.
Is a reverse mortgage right for me?
It fits homeowners who want to stay in their home, have significant equity and need more monthly cash or a safety net. If you have large savings but little income and want to buy or refinance, compare an asset depletion mortgage.
Frequently asked questions
How old do you have to be for a reverse mortgage?
62 or older for a HECM.
Do you make monthly payments on a reverse mortgage?
No monthly mortgage payment is required. You still pay property taxes, homeowners insurance and maintenance.
Can you lose your home with a reverse mortgage?
Only if you stop paying property taxes or insurance, stop maintaining the home or move out. As long as you meet those terms, the loan does not come due.
What happens to the home when I pass away?
Your heirs repay the loan, in most cases by selling or refinancing the home, and keep any remaining equity. They never owe more than the home is worth.
Is a reverse mortgage government insured?
The HECM is insured by the Federal Housing Administration.
Reviewed by
Kevin Danowitz
Founder, HP Mortgage LLC · NMLS #924478
In mortgage lending since 2003, starting as a loan officer at Chase Manhattan. Founded HP Mortgage in 2015 to place self-employed and non-QM borrowers the big banks turn away. Consistently one of the top-producing brokers with his wholesale lenders since 2017.