Types of Reverse Mortgages

1. Single-purpose reverse mortgages, which are offered by some state and local government agencies and nonprofit organizations.
2. Federally-insured reverse mortgages, which are known as Home Equity Conversion Mortgages (HECMs) and are backed by the U.S. Department of Housing and Urban Development (HUD).
3. Proprietary reverse mortgages, which are private loans that are backed by the companies that develop them.

For more information on Reverse Mortgages, visit:

• National Reverse Mortgage Lenders Association
• AARP
• U.S. Department of Housing and Urban Development
• Federal Trade Commission

What is a Reverse Mortgage?

A reverse mortgage is a loan against your home that you generally do not have to pay back for as long as you live there. It is designed to help those 62 and older tap into the equity they have built in their home. Loans through federal programs can provide up to $275,000 in a lump sum, monthly payments, a line of credit, or a combination of these methods. Your particular financial situation will help us determine which is best for you.

In many ways, a reverse mortgage is exactly that-the reverse of the typical home mortgage. You don't need an income to qualify for a reverse mortgage, whereas typical home mortgages are based on income qualification. You also don't have to make monthly repayments, and the loan can never exceed the value of the home. Following are some of the most frequently asked questions about reverse mortgages:

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