A reverse mortgage allows eligible homeowners to access part of their home equity without making a required monthly mortgage payment.

The loan is typically repaid when the borrower sells the home, moves out permanently, or passes away. HUD’s FHA-insured version is called a Home Equity Conversion Mortgage, or HECM.

Yes. You remain the homeowner. You must continue to live in the home as your primary residence and keep up with property taxes, homeowners insurance, HOA dues if applicable, and basic property maintenance.

No required monthly principal and interest payment is due with a reverse mortgage. However, you may choose to make payments voluntarily.

For a standard FHA HECM, borrowers generally must be 62 or older. Some proprietary reverse mortgage programs may allow borrowers as young as 55, depending on the state, property, equity, and program guidelines.

Yes, for FHA HECM loans, borrowers must complete counseling with a HUD-approved reverse mortgage counselor before moving forward.

It is possible, as it is with any loan, if loan obligations are not met.

Common issues include failing to pay property taxes, homeowners insurance, HOA dues, not maintaining the property, or no longer living in the home as the primary residence.

When the loan becomes due, heirs typically may sell the home, refinance the reverse mortgage balance, or pay off the loan.

Reverse mortgages are generally designed as non-recourse loans, meaning repayment is limited by the home’s value, subject to program rules.

No. It depends on age, equity, property type, cash flow needs, estate goals, and long-term plans. It should be compared against other options such as selling, downsizing, a HELOC, cash-out refinance, or traditional mortgage financing.