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Reverse Mortgage Information


If you are over 62 and worry about financing your golden years, Security First Financial can help. Reverse mortgages allow homeowners to take advantage of their home equity and age in place. They can be a good option for homeowners with a great deal of wealth invested in their homes.

What is a reverse mortgage?

Reverse mortgages allow you to access the equity you have built in your home and age in place. The kind of reverse mortgage we offer is called a Home Equity Conversion Mortgage, or HECM. The main benefit of a HECM is that it is insured by the Federal Housing Administration, which means you’ll never owe more than the home is worth.

A HECM can allow you to stop making payments on your home while you retain ownership.* You can also receive payments based on the amount of equity you have in the home. These payments come in a lump sum, installments or a line of credit. In some cases, a HECM can allow you to purchase a new primary residence to accommodate a changing lifestyle.

* Consumers remain responsible for property taxes, homeowner’s insurance, and home maintenance.

The loan is subject to foreclosure for failure to pay taxes and insurance to maintain the property and insurance and to comply with the terms of the loan.

How can I use the money?

Money received from a HECM is often earmarked by the borrower for necessary expenses such as unexpected healthcare costs, but you can use the money however you want. Some people even use a reverse mortgage to pay off an existing mortgage, buy a home better suited to a changing lifestyle or take a family vacation.

HECM for home purchase

With a regular HECM, you are required to stay in your home as a primary residence. With a HECM for home purchase, you can use the equity in your home to purchase a new home. This option is useful for homeowners whose current living arrangements are no longer suitable to their changing lifestyles. Borrowers interested in HECM for home purchase often buy homes closer to family. Some move to a smaller home or to a single-level home.

How do I qualify for a reverse mortgage?

There are several requirements you must satisfy to qualify for a HECM. Here are a few important ones to remember:

  • You must be 62 years of age or older.

  • You must own your property outright OR have paid-down a considerable amount.

  • You must attend a counseling session with a HECM counselor who has been approved by the U.S. Department of Housing and Urban Development (HUD).

  • You must live in the mortgaged home as your primary residence.

For more about HECM qualification requirements, visit the HUD website.

Bottom line

Reverse mortgages can be a good option for financing your retirement if you are over 62 and much of your wealth is in your home equity.

If you think a reverse mortgage is right for you, consult with one of our Loan Originators or see if you qualify by applying online...


This ad is not from HUD or FHA and was not approved by HUD or any government agency.

Opinions expressed are solely my own and do not express the views of my employer.

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