FHA Reverse Mortgage
Secure Income for Seniors

Lifetimes are spent creating homes. So it's not surprising how popular the FHA reverse mortgage has become among U.S. senior homeowners. In fact, this type of borrowing could bring tax-free income to you or a loved one during retirement years.

Advantages of FHA Reverse Mortgage

Also known as the Home Equity Conversion Mortgage (HECM), this HUD alternative to intrusive open houses, stressful negotiations, and giving up the family home provides financial solutions for those over the age of 62.

Interestingly, this specialty FHA financing preserves homes and supplements income, all without monthly mortgage payments.

Reverse Home Mortgage Benefits

Based on equity in a home where a senior lives full-time, they can...

  • Continue living in the comforts of home.
  • Create security from steady income.
  • Enjoy freedom and reduce the stress from mortgage payments.
  • Maintain a familiar lifestyle in their neighborhood.
  • Stay near family, friends, and doctors.
  • Avoid the struggle of selling a house.

FHA Reverse Mortgage Payment Options

You will probably be given payment options when you make loan application. Let's take a look at several choices.

Equal monthly payments: Every month for the remainder of your life, receive the same amount of income.

Equal monthly payments: For a fixed period of time, receive the same amount of income.

Unscheduled payments: Drawn from a line of credit (LOC) as needed.

Combined draws and payments I: Take both LOC draws and equal monthly payments for the remainder of your life.

Combined draws and payments II: Take both LOC draws and equal monthly payments for a fixed period of time.

Lump sum payment: Elect for one single lump-sum payment.

(Note: Lines of credit have pre-determined limits.)

FHA Rehab Loan to the Rescue

Is your fixer-upper in need of a face lift? Find simple solutions to a leaky roof and other home improvement needs with the FHA Rehab Loan.

Ask Kate

Here's how to find more information about FHA reverse mortgage. Ask Kate how to use your largest single investment, your home, to provide ongoing security today.

Don't miss this free reverse mortgage guide from Kate, What Is A Reverse Mortgage for more secure senior solutions.

Ask Kate about My Parent's Reverse Mortgage

By Anthony W. from Los Angeles, California


My parents received a reverse mortgage in 2007, their ages 91 and 76 years old. Wells Fargo Bank did the loan and took my mother's name off the loan documents but kept both my mother's and father's names on the trust Deed, in a evocable living trust.

Now my father died and the new 3rd party servicer is sending papers about loan now due, short sale, or deed in lieu of foreclosure is required of my Mother.

They bought the house together in 1958 originally and every loan leading up to the reverse mortgage was them together.

Wells Fargo Bank, took advantage of my parents what can I do to help my Mother stay in her Home?

Ask Kate answers: Your Parent's Reverse Mortgage

Dear A,

It's shameful that lenders were taking one spouse off the mortgage to get an easy loan approval when they knew full well that the mortgage would become due and payable upon the death of the borrowing spouse.

There is legislation going on right now that may help your mom if she can stall the loan servicer from stealing her home. Go to December 2013's New Information on Reverse Mortgage for Non-Borrowing Spouses which follows October 2013 FHA Reverse Mortgage News.

Bookmark those pages as I will be updating them when there is more news.

Best wishes to your family,


Important: Senior homeowners should consult a financial planner, tax accountant, and/or attorney as applicable to evaluate their circumstances before financing with a reverse mortgage. Even if not a loan requirement, reverse mortgage counseling is highly recommended.

Recent Articles

  1. Lock Mortgage Rates - How To Avoid Hidden Fees

    Aug 06, 18 11:58 AM

    If you lock mortgage rates over the phone, how do you protect against excessive points and hidden closing costs? Learn what to do when your lock is threatened.

    Read More

  2. Finding Low Down Payment Mortgage Financing

    Aug 06, 18 11:53 AM

    Getting a low down payment mortgage: Learn the first two steps to financing niche properties in resort areas. Tip: It's not about timing the real estate market!

    Read More

  3. Ten Best Kept Secrets to Low Mortgage Payments

    Aug 06, 18 11:45 AM

    Ask Kate's secrets to low mortgage payments help homeowners understand industry lingo related to refinancing. Learn how to get your best mortgage rate!

    Read More