What Is a Reverse Mortgage?

A reverse mortgage is a program which allows flexibility and security of homeowners aged 62+ for the FHA Insured HECM (Home Equity Conversion Mortgage), or the 55+ Proprietary jumbo product, to convert a portion of your home equity that you earned, into tax free money without paying your mortgage payment. It is the recently discovered fourth leg of financial retirement planner’s “3-legged stool” which traditionally has been social security, your employer or pension plan, and any personal savings or investments.

Key Idea:

The loan is repaid when the last surviving borrower or spouse sells, moves out permanently, or passes away.

Who It’s For:

Homeowners looking for extra income, greater financial flexibility, or the ability to age comfortably in place.

Types of Reverse Mortgages:

• HECM (Home Equity Conversion Mortgage): FHA-insured

• Proprietary (Jumbo) Reverse Mortgages: For higher-value homes

“Equity → Cash Flow → Freedom.”