FHA Reverse Mortgage

Quick Facts

  • A reverse mortgage is also known as a HECM.
  • This is a government insured loan designed to help seniors stay in their home with no monthly mortgage payments.
  • Borrower(s) on the title must be 62 years of age.
  • Offers flexible payment options to the borrower by getting money from a line of credit, lump sum or in monthly installments.
  • Home ownership counseling is required prior to obtaining a reverse mortgage.
  • Homeowners are still responsible for payment of property taxes and home owners insurance.
To qualify for a reverse mortgage a borrower must:
  • Be at least 62 years of age
  • Have the financial ability to pay the property taxes and homeowners insurance on this property
  • Must occupy the property as your primary residence
  • Must have on average 30 – 50% equity in your property
  • Not be delinquent on a federal debt
  • There are no income requirements other than having enough to pay the taxes and insurance on the property


The FHA created a reverse mortgage called the Home Equity Conversion Mortgage. The primary purpose of this loan was to allow borrowers 62 years of age and older to convert their equity in their home into a monthly stream of income or a line of credit. As a fully delegated lender for HUD/FHA, Residential Mortgage Solutions is authorized to originate reverse mortgages. These mortgages help provide seniors a valuable financing alternative to making mortgage payments. The most common use of reverse mortgage loans are for retirees on a fixed income that are feeling the burden of high mortgage payments. The elimination of these principal and interest payments can create a much better cash flow for consumers; thereby, allowing them more peace of mind during retirement. Other common uses of reverse mortgages are to pay off debt, assist with everyday living expenses, medical bills, home repairs and even vacations. A reverse mortgage is not the right loan for all borrowers, so you should seek our expert advice before deciding to move forward with this loan. Talk to one of our Licensed Loan Originators to review with you all of the possible risks and advantages. For a more in depth review of reverse mortgage loans go to www.HUD.gov.

Compare Loan Options | Our Products

Ready to take the next step? Apply Now or Get help from an expert.