Reverse Mortgage Education
You've worked hard
for your home.
for your home.
A reverse mortgage may help it work for you.
This page is here to give you honest, plain-language information about reverse mortgages — what they are, how they work, and what to know before you decide if one is right for you.
The basics
What is a reverse mortgage?
A reverse mortgage is a loan available to homeowners aged 62 and older that allows you to convert a portion of your home’s equity into readily accessible funds — without selling your home or making monthly mortgage payments.
Instead of you paying the lender each month, the lender disburses funds to you. The loan is repaid when you move out, sell the home, or pass away.
The most common type is the Home Equity Conversion Mortgage (HECM), which is federally insured by the FHA and regulated by HUD.
The process
How it works
1
See if you qualify
Age 62 or older, primary residence, and sufficient home equity.
2
Meet with a counselor
Required by law — free, independent, and government-certified.
3
Choose how to receive funds
Lump sum, line of credit, monthly disbursements, or a combination.
4
Stay in your home
You remain the owner. No monthly mortgage payments required.
Good to know
What to keep in mind
Your home. Your name.
A reverse mortgage does not transfer ownership of your home. Your name stays on the title. Your heirs have options when the loan becomes due.
Understand the costs
Like any mortgage, there are origination fees, closing costs, and insurance premiums. Understanding those costs upfront is part of making a good decision.
Not every home qualifies
Your home must meet FHA property standards and be your primary residence. Condos, manufactured homes, and multi-unit properties may qualify under certain conditions.
Questions? Talk to a loan officer.
A reverse mortgage is a big decision. Our loan officers are here to answer your questions honestly — no pressure, no obligation.
Find a Loan Officer
Borrowers aged 62 and over (with some loan products available to borrowers as young as 55) may qualify for a reverse mortgage loan program on their primary residence, based upon the property’s current equity. The borrower chooses to receive loan proceeds in one lump sum, or over regularly scheduled intervals. There are no monthly payments required so long as the borrower occupies the property as their principal residence, ensures the condition of the property is maintained to FHA standards, and remains current on ALL taxes (such as property), insurance (such as hazard), dues (such as homeowner association), and other such costs separate from the reverse mortgage itself. The loan is due and payable when the borrower vacates or sells the property. Borrowers must complete counseling with a government certified counselor before applying. Borrower should address questions about taxes, Social Security, Medicare, etc. to professionals in those fields.
This material has not been reviewed, approved or issued by HUD, FHA or any government agency. Failure to pay taxes, insurance, and HOA dues (if applicable) can cause the home to go into foreclosure. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Interest rates and program guidelines are subject to change without notice. DBA: SN Mortgage Company in KY & VA | snmc.com/disclaimer | snmc.com/state-licensing
This is not a commitment to make a loan, nor should it be construed as lending advice. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. SecurityNational Mortgage Company is an Equal Housing Lender NMLS# 3116.
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