Reverse Mortgage

Unlike a traditional mortgage that you pay back each month, reverse mortgages provide payments to you. They, in effect, “reverse” the direction of the mortgage payments. With reverse mortgages, no repayment of the loan is required until you no longer occupy the home as your principal residence. At that time, the loan is due and payable. If you and any of your co-borrowers are at least 62 years old and own your home free and clear of a mortgage or have very little mortgage principal outstanding, reverse mortgages may be for you. They provide an excellent opportunity for older Americans to enjoy extra security and financial support. To provide additional housing options for older homeowners, HUD insures reverse mortgages under the Home Equity Conversion Mortgage (HECM) program.