Reverse Mortgage Loans

What are Reverse Mortgage Loans?

A reverse mortgage loan is a financial product designed for homeowners aged 62 and older that allows them to convert a portion of their home’s equity into cash without selling the home or making monthly mortgage payments. Unlike traditional mortgages, reverse mortgages pay you, and the loan is repaid when the homeowner moves out of the property, sells the home, or passes away. This loan can help seniors supplement their retirement income and improve cash flow by tapping into their home equity.

Are Reverse Mortgage Loans Right for You?

Reverse mortgage loans are specifically designed for homeowners aged 62 or older who have significant equity in their homes and are looking for ways to supplement their retirement income. If you want to access cash for living expenses, medical bills, or home improvements without selling your home or making monthly mortgage payments, a reverse mortgage may be a good option. However, it’s important to have a long-term plan, as the loan must be repaid when the home is sold or the homeowner moves out.

Take the First Step Towards Homeownership

Eligibility Requirements

To qualify for a reverse mortgage loan, you must meet the following criteria:

Age

You must be 62 years or older.

Homeownership

You must own the home outright or have a low mortgage balance that can be paid off with the proceeds from the reverse mortgage.

Primary Residence

The property must be your primary residence, and you must live in the home.

Financial Assessment

You must demonstrate the ability to continue paying property taxes, homeowner’s insurance, and maintenance costs.

Home Type

Eligible properties include single-family homes, FHA-approved condominiums, and some multi-family properties (up to 4 units) where the borrower occupies one unit.

Reverse Mortgage Loans

Numbers at a Glance

Here’s a quick overview of key numbers associated with this type of loans

Minimum Credit Score

Not Specified

Varies by lender

Down Payment

None

For existing homeowners

Maximum DTI Ratio

No

Varies by lender

Loan Term

Lasts until

Borrower sells the home, moves out, or passes away

Upfront Mortgage Insurance Premium (UFMIP)

2%

Of the home’s appraised value or lending limit (whichever is less)

Annual Mortgage Insurance Premium (MIP)

0.5%

Of the outstanding loan balance

Get advice from a loan expert

We offer a variety of loan programs designed to meet the needs of every homebuyer.

Reverse Mortgage Loan is perfect for you?

Call us to learn more

Our team is here to support you with personalized guidance.

Benefits of Reverse Mortgage Loans

No Monthly Mortgage Payments

With a reverse mortgage, you don’t have to make monthly mortgage payments, freeing up cash for other living expenses.

Access to Home Equity

A reverse mortgage allows you to convert your home’s equity into tax-free cash, which can be used for medical expenses, home improvements, or other needs.

Stay in Your Home

Reverse mortgages allow you to remain in your home while accessing its equity, providing financial support without requiring you to sell the property.

Flexible Payout Options

Borrowers can receive funds as a lump sum, a line of credit, or regular monthly payments, depending on their financial needs and goals.

Not the Loan You're Looking for?

Check out other loan options

Ideal for borrowers with good credit, conventional loans offer competitive interest rates and flexible terms.

Available to veterans and active-duty service members, VA loans provide excellent terms with no down payment required.

Backed by the Federal Housing Administration, FHA loans are perfect for first-time homebuyers or those with less-than-perfect credit.

Designed for higher-priced homes, jumbo loans offer financing options above conventional loan limits.

ARMs start with a lower fixed interest rate for an initial period, then adjust periodically based on market conditions.

These government-backed loans are tailored for rural and suburban homebuyers, often with zero down payment.

Pay only the interest on your mortgage for a set period, ideal for buyers who expect an increase in income or future refinancing.

Enjoy the security of a consistent interest rate and stable monthly payments for the life of your loan.

Flexible loans for borrowers who don’t meet standard lending criteria are ideal for those with irregular income.

Combines purchase and renovation costs into one loan, perfect for buyers looking to fix up a property.

You can always ask for advice from a mortgage loan expert.

Ready to start an application for a loan?

Reverse Mortgage Loans FAQ's

Do I still own my home with a reverse mortgage?

Yes, you retain ownership of your home with a reverse mortgage, but you must continue to live in it and maintain it. The loan is repaid when you sell the home, move out, or pass away.

How much money can I receive from a reverse mortgage?

The amount depends on factors such as your age, the value of your home, current interest rates, and the reverse mortgage program you choose.

What happens to the loan when I pass away?

When you pass away, your heirs can either repay the loan and keep the home, sell the home to repay the loan, or allow the lender to sell the home to settle the debt.

Find Your Perfect Loan

First Finance Lending will guide you with expert advice and personalized service to start your homeownership journey with the perfect loan program.