Eligibility & Age Requirements

  • You and any co-borrowers must be at least 62 years of age
  • Your home must be your primary residence
  • You must own your home free and clear, or the existing mortgage is required to be refinanced with the reverse mortgage proceeds
  • Educational counseling with a HUD-approved counselor is required

Reverse mortgage costs

  • A deposit for the appraisal is an out-of-pocket cost
  • There are additional closing costs which may be financed as part of the loan, such as:
    • Title insurance
    • Mortgage insurance premiums
    • Attorney fees

Reverse mortgage repayment

You do not need to repay the loan as long as all program requirements are met, including:
  • You or one of the borrowers continue to live in the house
  • You keep the taxes and insurance on the property current
  • You maintain the property to FHA standards


Reverse mortgage repayment

  • There is no requirement that the home be sold, only that the loan be repaid.
  • If you die and your heirs choose to retain ownership of the home, the full outstanding loan balance must be paid.
  • Because the home is the only collateral attached to the loan, any remaining home equity, along with your other possessions, belongs to you or your heirs.


Two essential facts

Making an educated decision begins with understanding your responsibilities when applying for a reverse mortgage loan. Two points you need to be aware of are:
  • You must live in the home as your primary residence.
  • You must stay current on property tax and homeowner's insurance payments and maintain the home to FHA standards.