Everything You Need to Know About Reverse Mortgages

Reverse mortgages are a becoming more popular because they enable you to leverage your home equity into tax-free cash while still owning your home. As with any financial program, consumers need to know all the facts about reverse mortgages. SeniorClarity is a trustworthy source for information on reverse mortgages and our goal is to make sure you understand the advantages and disadvantages of reverse mortgages so you can see if a reverse mortgage is right for you.

Also known as Home Equity Conversion Mortgages (HECMs), began in 1989 and are insured by the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development. So reverse mortgages are government-backed and there are many reverse mortgage lenders to choose from.

If you get a reverse mortgage loan, you will not have to pay back the loan until the borrower is no longer living in the home. When the loan becomes due, it is paid in full including interest and financed closing costs. You will never owe more than your home’s determined worth at the time the loan is repaid. You’ll still pay property taxes and homeowners insurance with a reverse loan, but money will be freed up to allow you to enjoy your lifestyle and ease the burden on family members.

SeniorClarity has compiled extensive reverse mortgage information to help you decide if a reverse loan is a smart choice in your individual estate planning.

• Types of Reverse Mortgages: Learn about how HECMs work and discover the different types of reverse mortgage loans available. SeniorClarity provides the facts you need to understand reverse loans. Find out more¦
• Step-by-Step Process: Explore the process of getting a reverse mortgage and how reversemortgages can be a smart component of your estate planning. Find out more¦
• Common Misconceptions: There are advantages and disadvantages of a reverse mortgage; learn about some common reverse mortgage loan misconceptions and see if a HECM is right for you. This will help you weigh the pros and cons of reverse mortgages. Find out more¦
• Avoiding Scams: Senior citizens can fall victim to a variety scams including those involving a reverse mortgage, so SeniorClarity wants to ensure that you get accurate information with no pressure. Learn how to avoid reverse mortgage pitfalls and protect your assets. Find out more¦

Check out our glossary of reverse mortgage definitions that will help you understand the reverse mortgage process more easily.

SeniorClarity can help you get no-obligation information on reverse mortgages-click here to learn more.



A reverse mortgage can help you convert the equity in your home into tax-free cash while retaining ownership of your home. How does a reverse mortgage work? First, you have to meet some basic qualifications.

Reverse Mortgage Eligibility

The borrower obtaining a home equity conversion mortgage (HECM) must be:

• Be at least 62 years old
• Occupy the home as a primary residence the majority of the year
• Own the home and have a low enough balance that the existing mortgage can be paid off through the proceeds of the reverse mortgage
• Housing and Urban Development (HUD) counseling session over the phone

The following property types are eligible for reverse mortgages:

• Single-family, one-unit dwellings
• Two to four-unit owner-occupied dwellings
• Some condominiums and planned unit developments (please contact the reverse mortgage lender for specifications)
• Some manufactured homes

Do you want more information on reverse mortgages to help make the investment in your home last a lifetime?  Click here!