Just like the name says, a Reverse Mortgage, “Reverses” the flow of moneys on your existing real estate, turning it into an income stream, rather than an expense. Exclusively available to seniors, 62 years of age and over, they are nearly all sponsored by the US Department of Housing and Urban Development(HUD), calling them Home Equity Conversion Mortgages or (HECM). So, in other words, instead of cutting a check every month to pay for your mortgage, you collect a check.
As previously mentioned, seniors; all the applicants must own the home and must be at least 62 years of age and occupy the home and not be in bankruptcy. The subject property must be a single family, or 2 to 4 unit property.
Unlike most mortgages, you must first go to counseling prior to making application. You will have to complete a HECM counseling course. A HUD approved counselor can be found at:
Once your counseling has been completed, Homestead can accept your Reverse Mortgage application. From there you will find out how much you can borrow, order your appraisal and go over qualifying.
A great FAQ from HUD can be found at: