Reverse Mortgages
Reverse mortgages can be used for much more than simply creating extra monthly income. They may help eligible homeowners access home equity, pay off an existing mortgage, create a line of credit for future needs, support retirement cash flow, or purchase another primary residence.
Brian Wiesner is a Reverse Mortgage Specialist and Senior Mortgage Advisor who focuses on helping homeowners understand how these programs work, what they cost, what responsibilities remain, and how a reverse mortgage may fit into a broader retirement or housing strategy.
The goal is not to push a particular loan, but to help you understand the options clearly enough to decide whether a reverse mortgage makes sense for your situation.
When Might a Reverse Mortgage Be Worth Exploring?
Reverse mortgages can serve several different purposes. The right approach depends on the homeowner’s age, equity, goals, property and overall financial situation.
Stay in Your Home
Use home equity while continuing to live in your primary residence, provided the loan requirements are maintained.
Access Home Equity
Depending on the program, proceeds may be available as a line of credit, monthly advances, a lump sum, or a combination.
Purchase Another Home
Eligible homeowners may use a reverse mortgage for purchase to buy another primary residence while reducing the amount of cash needed compared with an all-cash purchase.
What is a Reverse Mortgage?
A reverse mortgage is a home loan designed for eligible older homeowners that allows a portion of the home’s equity to be converted into loan proceeds. Unlike a traditional mortgage, the borrower generally is not required to make monthly principal and interest payments while the loan remains in good standing.
The homeowner continues to own the home and remains responsible for property taxes, homeowners insurance, required maintenance, and any applicable homeowners association obligations. The loan generally becomes due when the last eligible borrower permanently leaves the home, sells the property, or otherwise triggers a repayment event under the loan terms.
What is the Process to Get a Reverse Mortgage?
Review
Eligibility
Start by reviewing age of the borrowers, occupancy, property type, available home equity, and the homeowner’s overall goals.
Compare Loan Options
Review the available reverse mortgage programs, estimated proceeds, costs, payment options, and how each approach fits the homeowner’s plans.
Complete the Loan Process
The process may include required counseling, application, appraisal, documentation, underwriting, and final loan approval.
Close & Access Proceeds
After closing, available proceeds are provided according to the selected program and payment structure, subject to the loan terms.
Options to Receive Reverse Mortgage Proceeds
Depending on the reverse mortgage program, available proceeds may be structured in different ways. The appropriate option depends on the homeowner’s goals, available equity, loan terms, and program requirements.
LUMP SUM
A portion of the available proceeds may be taken at closing, subject to program limits and loan terms.
LINE OF CREDIT
Available funds may be accessed as needed, subject to the terms of the reverse mortgage program.
MONTHLY ADVANCES
Some programs may allow proceeds to be received as scheduled monthly payments for a specified period or, in some cases, for as long as program requirements are met.
COMBINATION OF OPTIONS
Homeowners may be able to combine more than one payment option, such as receiving some funds at closing while preserving additional proceeds for future use.
Common Uses for a Reverse Mortgage
Important Homeowner Responsibilities
A reverse mortgage does not eliminate the homeowner’s ongoing responsibilities. To keep the loan in good standing, borrowers generally must continue meeting the requirements of the loan and maintaining the property as their primary residence when required by the program.
PROPERTY TAXES
Property taxes must continue to be paid when due.
Homeowner’s Insurance
Homeowners must maintain required hazard insurance coverage on the property.
Property Maintenance
The home must generally be maintained in a condition that meets program and loan requirements.
Occupancy Requirements
For programs that require the home to be a primary residence, applicable occupancy requirements must continue to be met.
Failure to meet applicable loan obligations may result in the loan becoming due and payable. Specific requirements vary by program and individual loan terms.
Reverse Mortgage Articles
Explore recent articles about reverse mortgages, retirement planning, home equity strategies, reverse mortgage for purchase, and other topics for homeowners considering their options.
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Why Waiting Too Long to Get a Reverse Mortgage Can Create Problems
Waiting too long to explore a reverse mortgage can create unexpected problems if home repairs begin to accumulate. Learn how property condition, appraisal requirements, and a little preparation can affect the process.
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Can You Buy a Home With a Reverse Mortgage? Questions I Hear Most Often
Key Takeaways You can buy a home with a reverse mortgage. Eligible homeowners may be able to combine their own funds with reverse mortgage financing…
Frequently Asked Questions About Reverse Mortgages
Ready to Explore your Options?
Brian is happy to answer your questions or provide a FREE, no obligation Reverse Mortgage Assessment. Please reach out using the method that best works for you.
