Reverse Residential Lending 

Reverse residential lending—also known as a reverse mortgage—is a specialized home loan option for homeowners aged 62 and older. It allows you to convert part of your home equity into tax-free cash, without the need for monthly mortgage payments. It’s a smart financial tool for seniors looking to enhance retirement income, cover expenses, or remain in their home comfortably.

How It Works

• Borrow against your home equity without selling or moving out.
• Receive funds as a lump sum, monthly payments, a line of credit, or a mix.
• You remain the homeowner and keep the title.
• The loan is repaid when you move, sell the home, or pass away.

Benefits

• No monthly mortgage payments required
• Flexible payout options
• Federally insured through FHA (for HECMs)
• You never owe more than the home’s value

Who Qualifies?

• Homeowners aged 62 or older
• Must live in the home as a primary residence
• Must have substantial home equity (around 50%+)
• Ability to pay property taxes, insurance, and maintain the home
• Completion of HUD-approved counseling required

Reverse vs. Traditional Mortgage

Considerations

• Equity decreases as loan balance grows
• You must still pay taxes, insurance, and maintenance
• Less equity may be left for heirs
• Higher closing costs than a traditional mortgage

Common Uses

• Covering daily living or medical expenses
• Paying off an existing mortgage
• Funding home improvements
• Creating a financial buffer in retirement
• Purchasing a new home