09/01/2026
Curious about Reverse Mortgages?
**Part 2**
This is VIDEO #2 of a 10-part series discussing the ins and outs of Reverse Mortgages from both sides of the desk.
In the first video, Marie talked about her reasons for getting a reverse mortgage of her own, the FHA HECM product. She got personal about what it means for her, in planning ahead for her kids.
In this video, Marie talks Reverse 101. There are a lot of things that are misunderstood about reverse mortgages.
Let's cover the basics of Reverse Mortgage 101:
-Available to homeowners age 62+, for the FHA HECM. There are other proprietary programs available going down to age 55, but not in all states. The FHA HECM is available in all 50 states.
-It is FHA-insured and non-recourse, meaning that you wouldn't owe more than the home is worth, and it can't be taken away as long as you follow the rules of the program. A big rule is that you have to pay property taxes, homeowners' insurance, and any HOA fees.
-There is no required monthly mortgage payment, unlike a traditional mortgage. You can make payments if you wish, but it is not required to make monthly mortgage principal and interest payments.
-There are different payout options, such as letting the line of credit grow over time and accessing later, drawing out some at closing, getting a monthly sum every month or for a certain period of time, or a combination. It depends on how much equity there is in the home and what the homeowner wants to do.
-Borrower retains home ownership. This is a common misunderstanding of the program. People think that with a reverse mortgage, that the 'bank' owns your home. There is a lien on the home, like with any other mortgage, but the homeowners retain title to their home.
Please follow our MT page and stay tuned for the rest of the series! In part 3, we'll cover some Myths vs. Truths about the reverse mortgages.
