Eligibility, Types, Requirements, Borrowing Limits, Interest Rates & How to Get ?

"Reverse Mortgage"

A reverse mortgage is a type of loan offered to homeowners ages 62 and older (60 in some states) that enables them to convert a portion of the primary residence’s equity into cash. 

What is a Reverse Mortgage ?

Reverse mortgage provides predictable tax-free cash payments based on your home equity. Homeowner can borrow against the value of their home and receive funds.

How the Reverse Mortgage Works ?

You must be the homeowner living in the home and be age 62 or older. The loan must be repaid when you move out, sell the house, die, or at the term’s end.

Who Qualifies for a Reverse Mortgage ?


FHA reverse mortgage & home equity conversion mortgage is the most common type of reverse mortgage. State and local programs may offer reverse mortgages for tax credits or tax deferral.

Types of Reverse Mortgages

The proceeds that you’ll receive from reverse mortgage will depend on the lender and your payment plan. You can’t borrow 100% of what your home is worth or anywhere close to it. 

Borrowing Limits of Reverse Mortgage

The market offers reverse mortgages, originated by 3 types of lenders. FHA approved lenders, single-purpose reverse mortgage lenders & banks and private mortgage lenders.

Types of Reverse Mortgage Lenders

Only the lump sum reverse mortgage has a fixed interest rate. The other options have adjustable interest rates, which makes sense since you’re borrowing money over many years.

Interest Rates of Reverse Mortgage

How to Get a Reverse Mortgage ?

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You can apply for a reverse mortgage with an FHA-approved lender or another lender. When you find a lender, you must submit residential loan application.