Discover the Truth About Reverse Mortgages

Here’s the Truth About Reverse Mortgages (No BS)

December 28, 2024     25 comments

A reader recently shared their skepticism about reverse mortgages, saying: "I've read a lot about reverse mortgages, and it seems they're more for the bank's benefit than yours.  They make it sound like they're helping, but in reality, you're giving away your home for a low price.  If you get a reverse mortgage and pass away soon after, your home could be lost, and your family won't be able to keep it, even with a will." We agree with one point: reverse mortgages aren't for everyone.  But it's important to... Read Full Article

Reverse Mortgages and Medicaid/SSI Benefits: Key Considerations for 2025

December 27, 2024     50 comments

Reverse mortgage proceeds can provide valuable financial support, but they may also influence your eligibility for Medicaid or Supplemental Security Income (SSI). Understanding these potential effects is essential for making informed decisions. If you’re 62 or older and considering a reverse mortgage to supplement your retirement income, it’s important to evaluate how this choice could impact your access to needs-based programs.  Careful planning can help you make the most of this financial tool while preserving your benefits. Understanding Means-Tested Benefits Means-tested benefits are based... Read Full Article

Non-Recourse Reverse Mortgage Protections Explained

December 27, 2024     29 comments

The non-recourse feature of reverse mortgages is a powerful safeguard, yet it’s often misunderstood. It’s even sparked debates—like the AARP lawsuit against HUD—over its scope. Simply put, a non-recourse reverse mortgage ensures you’ll never owe more than your home’s value when the loan matures. But how does this protect you and your heirs? Let’s break it down. How Non-Recourse Protection Works Picture this: A 66-year-old homeowner with a $500,000 home secures a $321,000 fixed-rate reverse mortgage. After 20 years of no payments, interest pushes the balance to $1,000,000. The... Read Full Article

2025 HECM Reverse Mortgage Limits Surge to $1,209,750

November 27, 2024     2 comments

Our guide breaks down the FHA's decision in an easy-to-understand format.  We've included handy tables comparing the reverse mortgage loan limits of 2024 and 2025, showing you exactly how much more you can borrow.  Plus, a "2025 Loan-To-Value Comparison" table illustrates how much of your home's value you can tap into with these new lending limits. This article, backed by data and expert analysis, is designed to be your one-stop guide to understanding the changes in HECM limits for 2025. Exciting News: HUD Increases Reverse Mortgage Lending... Read Full Article

Reverse Mortgage vs. HELOC and Home Equity Loans: Easier Qualifications and More Flexibility

November 18, 2024     21 comments

As retirees seek ways to supplement their income or cover expenses, accessing the equity in their home can be a practical solution.  Two popular options for doing so are the Home Equity Line of Credit (HELOC) and the Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage.  While both allow homeowners to unlock the value of their property, they differ in terms of eligibility, repayment terms, and long-term impact on finances. In this article, we’ll explore the key differences between a HELOC and a reverse mortgage, helping you... Read Full Article

Reverse Mortgage Age Requirements: Choosing the Right Program for Your Needs

October 5, 2024     18 comments

Reverse mortgages offer older homeowners a way to access the equity in their homes without the burden of monthly mortgage payments.  The most popular option is the Home Equity Conversion Mortgage (HECM), insured by the Department of Housing and Urban Development (HUD).  This program provides a safe and reliable way for homeowners aged 62 and older to tap into their home equity. In addition to HECM, proprietary reverse mortgages are available, with some programs accepting borrowers as young as 55.  These private loans expand the options for homeowners who may... Read Full Article

Are Reverse Mortgages a Scam? Here’s the Facts You Need to Know

September 8, 2024     32 comments

The reverse mortgage is a scam! I am a banker, and I see elderly customers getting deceived daily by these 'reverse mortgages.' They end up losing everything and put their heirs in jeopardy. -Tim As a mortgage banker with over 45 years of experience, I've worked with many major banks, mortgage companies, and insurance firms, handling a wide range of lending products. While some financial products can be less favorable or risky for borrowers, reverse mortgages are not a scam. The key to avoiding confusion and misinformation is education. Understanding... Read Full Article

HECM: A Simple Guide to Home Equity Conversion Mortgages

August 30, 2024     12 comments

Understanding the HECM Program: A Comprehensive Guide The Home Equity Conversion Mortgage (HECM) program is the most widely used reverse mortgage option in the U.S. Insured by the Federal Housing Administration (FHA) and regulated by the Department of Housing and Urban Development (HUD), HECMs allow homeowners aged 62 or older to access their home equity while staying in their homes. In this guide, you’ll learn: How HECM loans work, including costs and requirements. Key benefits of FHA insurance and borrower protections. How HECMs compare to other home equity options like... Read Full Article

2025 Guide to Reverse Mortgage Purchase (HECM Purchase)

July 29, 2024     16 comments

All Reverse Mortgage flawlessly handled my reverse mortgage purchase, providing clear explanations and great professionalism. They promptly answered my questions and quickly returned calls. I highly recommend them to friends and family. -John P.(BBB) Introduction to Purchase Reverse Mortgages Welcome to our guide on Purchase Reverse Mortgages!  In this article, we will explain how you can buy a new home with a special kind of reverse mortgage, making it easier for you to transition to a new living situation as you age.  Whether you are considering downsizing, moving to... Read Full Article

Here’s an Ideal Reverse Mortgage Purchase Example

July 12, 2024     5 comments

Understanding the Reverse Mortgage for Purchase Program Many seniors prioritize finding a home that suits their lifestyle as they retire. Whether they’re looking to downsize, rightsize, avoid stairs, or find a low-maintenance property, the Reverse Mortgage Purchase program—also known as HECM for Purchase or "H4P"—is a valuable option that’s often overlooked. If you’re 62 or older, this HUD-insured program allows you to buy a new home without the burden of traditional mortgage payments. It offers the flexibility to move into a home that better meets your needs in retirement... Read Full Article