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'About Reverse Mortgages' Category Archives

How a Home Equity Conversion Mortgage Works (HECM)

In the world of mortgages, one term is a must-remember for senior homeowners: Home Equity Conversion Mortgage, also known as a HECM, or “heck-um.” A breakdown of reverse mortgage loans and how they work reveals just how helpful they can be for qualified senior homeowners who are 62 years of age or older. Here are some common questions and answers...
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Reverse Mortgage for Veterans? (VA Reverse Mortgages)

Question from our reader: "We have a reverse mortgage, but we were never told that there was a reverse mortgage for veterans. We have quite a bit of equity in our home. Can we refinance our current reverse mortgage to a VA reverse mortgage?" -Debbie Hi Debbie, FHA and VA don’t offer loans directly. HUD through FHA insures...
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Here are 3 Reverse Mortgage Examples in 2021

Is there an example of how a reverse mortgage works? We get this question all the time, from borrowers, family members and even others in the lending industry and other professional industries who just don’t understand the product. It seems that almost everyone has an opinion on reverse mortgages and often they are based on almost no factual knowledge....
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Reverse Mortgage Occupancy Requirements Explained

We live with my mother-in-law and were present throughout the process of her getting a reverse mortgage. The broker is fully aware that we live there with her and help keep up the property and pay living expenses. He told us if she ever needed to go to a nursing home if she is on the home at least once...
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Non-Recourse Reverse Mortgage Protections Explained

What is a Non-Recourse Reverse Mortgage?  The Non-Recourse feature of the Reverse Mortgage product is something that is often misunderstood by the general public and has been the topic of a recent lawsuit between AARP and HUD over the interpretation and implementation of it. Simply, Non-Recourse reverse mortgage means that a borrower can never owe more than their home is...
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What is a Reverse Mortgage? Explained in Simple Terms!

A reverse mortgage is a loan for homeowners age 62 and older that requires no monthly mortgage payments. The loan is repaid when the borrower passes away, leaves the home permanently or sells. Available funds can be distributed as a single lump sum, line of credit, structured monthly payments, or combination of all. The most common type of reverse mortgage...
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Here’s How a Reverse Mortgage Works – By ARLO™ (2021)

A reverse mortgage works by allowing homeowners age 62 and older to borrow from their home’s equity without having to make monthly mortgage payments. The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), a program insured by the Federal Housing Administration since 1988. The amount of funds available from a reverse mortgage are based on the...
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How Reverse Mortgages Finally Became Safe

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The decision to take out a Home Equity Conversion Mortgage  is a big one, and you may be wondering how safe this government-insured loan program is. While reverse mortgages aren't right for everyone, the HECM program has several built-in protections designed to keep borrowers safe. Safeguard #1 - Federal guarantee One of the program’s biggest protections is that...
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If I Take a Reverse Mortgage Does the Bank Own My Home?

I just received a great question from from one of our visitors...  Am I applying for both a loan, and a line of credit? Where does the possibility of any cash equity affect me? What  I had been told was:  This is to be a simple transferral of my home to the company, with no further mortgage payments from...
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