Reverse mortgages
A loan for older homeowners that turns part of home equity into funds while the balance grows.
What it is
A reverse mortgage lets an eligible older homeowner borrow against home equity without making the usual monthly mortgage payment. Interest and fees are added to the loan balance, so the amount owed generally grows over time. The loan usually becomes due when the last eligible borrower no longer lives in the home as a principal residence. Property taxes, homeowners insurance and home maintenance remain the homeowner's responsibility.
Who it's for
- Older homeowners considering home equity as part of a longer-term plan
- Families who want to understand what happens to the balance and the home later
- Owners willing to compare a reverse mortgage with selling, downsizing or other equity options
The essentials
The balance usually grows
Interest and fees are added to what is owed. That uses more of the home's equity over time and can leave less for the owner or heirs.
The house still carries duties
The homeowner remains responsible for property taxes, insurance and maintenance. Falling behind on those duties can put the loan and home at risk.
The end of the loan matters now
Understand when repayment is triggered and what choices the owner or heirs would have. This is a family and housing decision, not only a payment decision.
Common questions
- Does the lender own the house?
- No. The homeowner keeps title, but the reverse mortgage is a loan secured by the property. The balance and the homeowner's ongoing duties still matter.
- Do taxes, insurance and repairs go away?
- No. The homeowner is still responsible for property taxes, homeowners insurance and keeping the property maintained.
Source: CFPB reverse mortgage guide. Current program documents and the borrower's final disclosures control.
The CFPB guide establishes how a reverse mortgage uses equity, why the balance grows, when repayment is generally triggered and which homeowner duties continue. A current lender review and required counseling establish the fit for a specific homeowner.
Related programs
Home equity loans and HELOCs
Borrowing against equity you already have, as a lump sum or as a line you draw from.
Cash-out refinance
Replacing your mortgage with a larger one and receiving part of the difference.
Rate-and-term refinance
Replacing the mortgage you have with a new one built around a different rate or term.
This page is general information about loan programs, not a commitment to lend or an offer of credit. Program availability, terms, and qualification depend on your situation and are subject to underwriting approval. Tareq Maayta, NMLS #1443073. Loans through Finance USA Corporation, NMLS #135625. Equal Housing Opportunity.