A reverse mortgage** is a strictly regulated and insured Federal Housing Administration (FHA) loan specifically designed for seniors. A reverse mortgage allows homeowners who are at least 62 or older to access the equity in their home. Unlike a traditional mortgage or home equity loan, a reverse mortgage does not have to be repaid until the last surviving borrower no longer lives in the home, or the house is sold. Just like a regular mortgage, the homeowner stays on the title and is the legal owner of the home.
- How much equity can be accessed depends on the borrower’s age and the value of the home
- Available equity can be tapped as a lump sum, an irrevocable line of credit that grows, a stream of payments, or a combination of all three
- Closing costs and mortgage insurance can be financed, so out of pocket expenses are minimal
- Borrower remains 100% owner of the property
- Borrower retains all remaining equity in the property
A reverse mortgage can be an excellent tool for older homeowners who find that their income is falling short of their needs or are concerned about outliving their other income sources.
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**Product available through Finance of America Reverse LLC |