A: Each month, the interest is added to your loan balance. You only repay the loan when you sell the house or when the loan becomes due (such as after you pass away).

A: The Home Equity Conversion Mortgage (HECM) is the most common type of Reverse Mortgage. It’s government insured and backed by the Federal Housing Administration (FHA). There are other reverse mortgage programs available that are not FHA insured such as the Jumbo Reverse Mortgage or Reverse Second Mortgage which may be a better option for you.

A: This program allows for you to tap into your equity on a primary residence and not having to make a monthly mortgage payment. Every month, you receive a statement showing the interest being added to your loan balance. Although a payment is not required, you are welcome to make a payment to keep the balance at the original starting amount.

A: The lender requires that you live in the home as your primary residence and that you maintain homeowners insurance, property taxes and any HOA dues. Of course just like any mortgage, the lender will also require that you keep the home in livable condition.

A: In all states except for Texas, YES you can still qualify. Your spouse would be considered a “non-borrowing spouse”. Upon your passing, the spouse would be allowed to stay in the home and not have a payment for life although he/she would not have access to any remaining funds in the line of credit, tenure or term payments. 

A: The loan is required to be paid back when one of the following happens:

– Last borrower or non-borrower spouse passes away

– Borrower no longer uses the home as the primary residence

– Borrower sells or refinances the home