The only reverse mortgage insured by the U.S. Federal Government is the Home Equity Conversion Mortgage (HECM), which is available exclusively through FHA-approved lenders. If you’re 62 or older, have fully or partially paid off your mortgage, and reside in the home, you may qualify for the HECM program. This program enables you to withdraw a portion of your home’s equity, providing you with financial flexibility.

Unlike traditional mortgages, where borrowers make monthly payments to a lender, a reverse mortgage works in reverse the lender makes payments to the homeowner. The loan does not need to be repaid until the homeowner sells the property or moves out permanently. However, the borrower must keep up with property taxes, homeowners insurance, and any applicable homeowners association fees to maintain eligibility.