While the majority of reverse mortgages are Home Equity Conversion Mortgages, or "HECM" loans, there are several reverse mortgage loan types to be aware of if you are in the market for tapping into your home equity.  In this article, you will learn:  What differentiates each of the different reverse mortgage types Key elements that each type offers Resources and where to learn more In addition to HECM loans, there are proprietary or "jumbo" reverse mortgages and single-use reverse mortgages.  Proprietary loans have recently gained popularity, particularly in ..read more

A reverse mortgage can be a powerful tool for an American senior aged 62 or older to create a new source of cash flow from his or her home equity. With a Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM), the borrower still retains ownership of the property while continuing to live there over the course of the loan. He or she is not required to make monthly mortgage payments during that time. Reverse mortgages are often misunderstood, and a common misperception is the idea that in ..read more

Personal finance experts often address reverse mortgage questions and concerns from the general public, which typically involves a discussion of the pros and cons around these financial products. Suze Orman, known for years of experience providing personal financial expertise, including hosting the Suze Orman Show on CNBC for over a decade, has often answered questions and provided her opinions on reverse mortgages.  Orman, who in addition to her time on CNBC, has written 10 New York Times personal finance bestsellers and has appeared frequently as a guest on tele ..read more

Hello Arlo, My mother passed away a year ago. She had taken a reverse mortgage on her home. We later discovered that my mother had not been paying her property taxes, and her home had now been foreclosed. Will they auction the home off? And exactly where do the proceeds of the auction go? If the home sells in auction for more than the reverse mortgage amount. Then where does the rest of the money go? My mother's home is valued at approximately $250.000. I'm not sure, but I think ..read more

HUD has always been about serving the underserved. They even issued a Strategic Plan in March of 2022 outlining 5 areas they would concentrate on helping serve the community. You can find that plan online here. What you cannot find anywhere in that 82-page plan is a mention of senior homeowners who have been decimated by high-interest rates and HUD cutbacks in the Home Equity Conversion Mortgage (HECM) reverse mortgage program since 2009 when HUD first started seeing problems with the HECM reverse mortgage program due in part to a ..read more

Dear ARLO, I just returned from the hospital, where my uncle was transported by his neighbor, thinking he was having a heart attack.  My uncle said he almost passed out after receiving a letter from his reverse mortgage lender threatening to foreclose. I was told he may be discharged tomorrow, but I need to quickly step in to help him, a retired veteran.  Before wasting your time, I read some comments on this site and found a few similar ones, but I need clarification, so I am asking for help ..read more

This will be welcoming news if you are worried about reverse mortgages being non-FDIC insured. Fortunately for reverse mortgage borrowers, reverse mortgages are not FDIC insured and, therefore, are not endangered by all the turmoil with banks at this time. The U.S. Department of Housing and Urban Development (HUD) guarantees the reverse mortgage. Specifically, HUD guarantees that the borrower can access the full line of credit. Rates had been creeping up quickly in recent weeks, driving borrowers’ available funds on reverse mortgages down. Still, when Signature Bank ..read more

The U. S. Department of Housing and Urban Development (HUD) requires that homeowner(s) interested in pursuing a Home Equity Conversion Mortgage (HECM) receive mandatory reverse mortgage counseling regarding the implications of and alternatives to a reverse mortgage from a HUD-approved HECM counseling agency. We are required by HUD regulations to provide you with a list of reverse mortgage counseling agencies. The list must contain Five (5) nationwide companies as directed by HUD for the Home Equity Conversion Mortgage, several counseling agencies that are the most local to you (some borrowers ..read more

Many people who applied for a reverse mortgage sometime in the past but then applied again over the last year were surprised to see that when they looked at the numbers again, they received a lot less money now.  For some, the difference was so great that even though the past figures allowed them enough to repay the existing mortgage on the home, the new amount available to them was not even sufficient to pay off the balance of the existing loan. This left borrowers frustrated and, in some cases ..read more

The American Association of Retired Persons (AARP) is a large, independent, nonprofit organization dedicated to helping people ages 50-plus to achieve independence—including financial independence. While the organization, which serves 37 million older Americans and counting, doesn't offer reverse mortgage products directly, it does weigh in on them in some very important ways. Here’s where AARP comes into play for retirees who may be looking into getting a reverse mortgage as a means to age in place. What does AARP think of reverse mortgages? AARP has expressed support for reverse ..read more