A Reverse Mortgage — officially known as a Home Equity Conversion Mortgage (HECM) — is a federally insured loan that allows eligible homeowners to access their home equity.
Unlike a traditional mortgage:
You must continue to pay property taxes, homeowners insurance, and maintain the home.
To be eligible, you must:
Eligible property types include:
Homeowners often use Reverse Mortgage proceeds to:
You choose how to use the funds — there are no restrictions.
1. Senior wanting to eliminate monthly mortgage payments A 72‑year‑old homeowner still has a traditional mortgage with a monthly payment that’s straining their retirement income. By using a reverse mortgage to pay off the existing loan, they eliminate their monthly mortgage payment while remaining in the home they love, freeing up cash flow for everyday expenses.
2. Homeowner needing funds for medical care A retired couple needs additional funds to cover rising medical and in‑home care costs. With a reverse mortgage, they access a portion of their home equity as a lump sum or line of credit, helping them pay for care without having to sell or move.
3. Retiree wanting a line of credit for emergencies A 68‑year‑old retiree is comfortable today but worried about future “what‑ifs.” They choose a reverse mortgage line of credit, which grows over time and can be used for unexpected expenses, home repairs, or supplemental income later in retirement.
Access tax‑free funds, eliminate monthly mortgage payments, and stay in the home you love.
Speak with a reverse mortgage specialist today.
A Reverse Mortgage may not be right for everyone. It’s important to understand:
Our team will walk you through every detail so you can make an informed decision.
A Reverse Mortgage can be a smart option if you:
We’ll help you evaluate your goals and determine whether this program fits your needs.
Reverse Mortgages are powerful tools — but they require careful planning. Our experienced team at ABC United Finance Corp is here to answer your questions and guide you through the process.
Contact us today to learn more or request a personalized Reverse Mortgage review.
Reverse Mortgages (HECMs) are FHA‑insured loans for homeowners age 62 and older. Borrowers must continue to pay property taxes, homeowners' insurance, and maintain the home. Loan repayment occurs when the home is sold, the borrower moves out, or the borrower passes away. Consult a financial advisor or tax professional for personalized guidance.
Reverse Mortgage vs. HELOC vs. Cash‑Out Refinance
| Feature | Reverse Mortgage (HECM) | HELOC | Cash‑Out Refinance |
|---|---|---|---|
| Monthly mortgage payments | No monthly mortgage payments required | Monthly payments required | Monthly payments required |
| Qualification based on income/credit | More flexible; focuses on age, equity, and property | Requires strong credit & income | Requires strong credit & income |
| Age requirement | Must be 62 or older | No age requirement | No age requirement |
| Repayment timeline | Loan due when borrower leaves the home or passes away | Monthly repayment begins immediately | Monthly repayment begins immediately |
| Access to funds | Lump sum, monthly payments, or line of credit | Revolving line of credit | Lump sum at closing |
| Use of funds | Flexible: income, medical costs, home repairs, etc. | Flexible | Flexible |
| Impact on retirement cash flow | Improves cash flow (no payments) | Reduces cash flow (payments required) | Reduces cash flow (payments required) |
| Ownership of home | Borrower keeps full ownership | Borrower keeps ownership | Borrower keeps ownership |
| Best for | Seniors wanting to stay in their home and access equity without payments | Borrowers needing short‑term access to funds and can afford payments | Borrowers wanting to refinance and take cash out with stable income |
A Reverse Mortgage (HECM) allows homeowners age 62+ to convert home equity into cash without making monthly mortgage payments. You remain the owner of your home.
Yes. You keep full ownership and title. You must continue paying property taxes, homeowners insurance, and maintain the home.
The loan is repaid when you sell the home, move out permanently, or pass away. Your heirs can choose to refinance, sell the home, or pay off the balance.
You can choose a lump sum, monthly payments, a line of credit, or a combination of these options.
No. Reverse Mortgage proceeds are generally tax‑free, but you should consult a tax professional for personalized advice.
Costs may include FHA mortgage insurance, closing costs, and interest. These can often be financed into the loan.
You must continue paying property taxes, homeowners insurance, and maintain the home. Failure to meet these obligations can put the loan at risk.
Yes. HUD‑approved counseling is required to ensure you fully understand the program before moving forward.
Yes. Your heirs can keep the home by paying off the loan balance or 95% of the home’s value — whichever is lower.
⭐⭐⭐⭐⭐ “My monthly mortgage payment was taking up too much of my retirement income. The reverse mortgage allowed me to stay in my home comfortably without worrying about that payment anymore. It has truly eased my financial stress.” — Eleanor M., Arlington, VA
⭐⭐⭐⭐⭐ “When my father needed extra funds for medical care, we didn’t want him to sell the home he’s lived in for 40 years. The reverse mortgage gave him the money he needed while keeping him in the place he loves. It was a blessing for our family.” — John R., Son, Washington, DC
