Reverse Mortgage Information Center

How do Reverse Mortgages work?

We believe you will benefit from a conversation with our team about reverse mortgages, but we do want to provide a snapshot of how a Reverse Mortgage works:


  • Any homeowner who is 62 years old or older can qualify for a reverse mortgage.  It is, however, required for the homeowner to be living in the property
  • Financial Assessment – we don’t qualify on credit scores.

    With over 25 years in the reverse mortgage business, I can work with all sorts of situations.


  • Applying for a reverse mortgage varies for each person and for each individual case.  The amount of money that you can get depends on the following factors:
    • Your age
    • The value of your home
    • Current interest rates
    • The HUD Loan Limit in your area

Money Reception

After being approved for a reverse mortgage, you get to choose how to receive your money.  It can be taken through these options:

  • As a Lump Sum at the Closing of the Loan
  • As a Monthly Cash Advance
  • As a Line of Credit
    Any Combination of the above three options
  • Option to Take a Lifetime Monthly Payment


Paying the mortgage is determined by three different cases. The first case entails the death of the surviving spouse. The second case conveys this payment when the surviving spouse sells the home. Finally, the third case takes place after the surviving spouse moves away permanently or for 12 months in a row.


Reverse Mortgages are safe because they are insured by the U.S. Department of Housing and Urban Development (HUD) and by Fannie Mae®. As a result, payments to borrowers are guaranteed by the U.S. government. Furthermore, these mortgages are only available through HUD approved lenders. Prior to application, independent HUD counseling is required. Moreover, reverse mortgage application does not affect Social Security or Medicare benefits*. As you can see, acquiring a reverse mortgage can be a very helpful option.

“I heard a lot about Reverse Mortgages – how do I know what is Fact and what is Fiction?”

There are a many myths about reverse mortgage. We recommend you consider doing the following to sort through the myths and facts:

  • Check back regularly here to our Info Center as we will address this topic with frequency
  • Follow us on social media
  • Call David with your concerns for a free consultation

Do I qualify for a Reverse Mortgage?

One of the most often asked questions we receive.  We recommend you sit with our team to review what the qualifications are.  Our consultations are free and we will provide with all of your options. 

What about the bank’s role?

We are often asked about the bank and reverse mortgages.  Let’s clear up a few misconceptions:

  • The bank is loaning you money in the same way it loans you money when you take out a home equity loan.  If you die, the home is still your’s to pass to your heirs.
  • The bank is not taking your house.  A reverse mortgage does not mean you are selling your home.  You are the only person on the title.  You still have ownership.
  • You are only eligible to borrow a portion of your home equity-not the full value of your home
  • There are multiple ways to receive the money. You can take the money as lump sum, line of credit you use as needed, monthly advances for a period of time or as long as you own your home.

Call David Today


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