What Is a Reverse Mortgage?

A reverse mortgage is a unique type of home loan available to homeowners who are at least 62 years old—or in some cases, 55, depending on the program. This loan allows homeowners to convert a portion of their home equity into cash, without having to make monthly principal and interest payments.

As long as borrowers continue paying their property taxes, homeowners insurance, and other property-related fees (like HOA dues), they can remain in their homes without the burden of a traditional mortgage payment. The main goal? Eliminate monthly mortgage payments while maintaining homeownership.

Reverse Mortgage for Purchase: A Lesser-Known Option

Did you know you can also buy a home using a reverse mortgage? It’s true—and still relatively unknown. This option is especially helpful for those looking to downsize, relocate out of high-cost areas like California, or purchase a retirement-friendly home with no monthly mortgage payments.

What Is a HECM (Home Equity Conversion Mortgage)?

You may have heard the term HECM—but what does it mean? HECM stands for Home Equity Conversion Mortgage, which is simply another term for a reverse mortgage. It’s the official FHA-insured version of the loan and has been significantly improved over the years to offer better protection and benefits for borrowers.

Debunking Common Reverse Mortgage Myths

There are many misconceptions about reverse mortgages, such as:

• “The bank takes my house.”
• “I’ll lose all my equity.”
• “My kids will be stuck with debt.”

The truth? Modern reverse mortgages—especially FHA-insured HECMs—do not take ownership of your home, and your heirs are protected. FHA and HUD have implemented consumer-friendly changes that make these loans more secure and flexible than ever.

Real-Life Experience

One of our clients calls regularly, worried because her friends have warned her she’ll lose her home. The reality is, she’s safe and secure—she’s living mortgage-free, and still fully owns her home. Reverse mortgages aren’t what they used to be, and with proper guidance, they can be a powerful financial tool in retirement.