Reverse Mortgage Learning Center
Areverse mortgage is a federally insured mortgage that allows homeowners age 62 or older to access their home equity in cash, monthly payments, or a growing line of credit.
This financial product is available to only older Americans who have accumulated home equity and now want to use this as their retirement income. Borrowers generally do not have to repay the loan until the last borrower no longer uses the home as his or her primary home. At that time, the home has to repay the reverse mortgage balance within six months.
There are different types of reverse mortgage solutions. However, FHA-insured Home Equity Conversion Mortgage (HECM) is the most popular reverse mortgage. Here, FHA stands for Federal Housing Administration, which is a division of HUD (U.S. Department of Housing and Urban Development).