A reverse mortgage allows homeowners aged 62 or older to access a portion of their home’s equity without giving up ownership or taking on monthly mortgage payments. Whether you want to supplement retirement income, pay off an existing loan, or create financial breathing room, we’ll help you understand if a reverse mortgage is the right fit.
A reverse mortgage is a loan designed for homeowners 62 or older that allows you to access a portion of your home equity. Unlike traditional loans, you don’t make monthly mortgage payments. Instead, the loan is repaid when you move out, sell the home, or pass away.
You stay in your home and retain ownership, while receiving funds from the lender in the form of a lump sum, monthly payments, or a line of credit. The loan amount is based on your age, home value, and current interest rates.
To qualify, you must be at least 62 years old, live in the home as your primary residence, and have significant equity. The home must meet FHA property standards, and you’ll also need to complete a HUD-approved counseling session to ensure you understand your options.
You can use the funds for anything that supports your lifestyle or financial goals. Common uses include covering daily living expenses, home repairs or upgrades, medical bills, long-term care, or simply creating a safety net for future needs.
Yes. A reverse mortgage does not transfer ownership. You continue to hold title to the home and are responsible for property taxes, homeowners insurance, and basic upkeep.
The reverse mortgage becomes due when the last borrower no longer lives in the home. At that time, the home is typically sold, and the loan is repaid from the proceeds. Any remaining equity belongs to you or your heirs.
At LUMI Funding Group, we take the time to explain your options clearly and without pressure. Reverse mortgages are a powerful tool, but they’re not one-size-fits-all. Our advisors are here to walk you through every detail, answer your questions, and help you determine whether this loan is a good fit for your retirement goals. We work with transparency and care, offering guidance you can trust every step of the way.
We’ve answered the most common questions about reverse mortgages so you can make confident, informed decisions about your financial future.
The most common type is a Home Equity Conversion Mortgage (HECM), which is insured by the FHA. There are also proprietary reverse mortgages for high-value homes and single-purpose reverse mortgages offered by some nonprofits or government agencies.
The amount depends on your age, your home’s value, and the current interest rate. Older borrowers with more equity generally qualify for higher amounts.
No. You don’t make monthly mortgage payments with a reverse mortgage, but you must continue paying property taxes, insurance, and maintenance costs to keep the loan in good standing.
Not if you meet the terms of the loan. As long as you live in the home, keep up with taxes and insurance, and maintain the property, you remain the owner.
Reverse mortgages include closing costs, mortgage insurance premiums (for HECMs), and servicing fees. These are usually rolled into the loan, so they don’t require upfront payment.
No. Reverse mortgages are non-recourse loans, meaning your heirs are not responsible for paying more than the home’s value, even if the loan balance exceeds it at the time of repayment.
A reverse mortgage can offer older homeowners a way to access cash without selling their home or taking on monthly payments. It provides flexibility for managing retirement expenses, planning for long-term care, or simply enjoying more financial peace of mind. The loan is repaid when the home is sold or no longer occupied, with no personal liability beyond the home’s value. For those who qualify, it’s a powerful option that puts control and equity back in your hands during retirement.
