Senior Equity Reverse Mortgage®
Find answers to the most common questions.
If you don’t see your question below, please call our helpful Equity Loan Officers. They are highly skilled and offer clear advice about reverse mortgages. When you’re ready to apply, they’ll guide you along every step of the process. Call today at 1.877.245.8852.
Look for your question below, and click it to read the answer.
Reverse mortgage question and answer categories:
Eligibility & requirements
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What is a reverse mortgage?
A reverse mortgage is a loan that allows you to convert a portion of your home’s equity into tax-free income. With this type of loan, no repayment is required until the loan is due. The loan becomes due when the last borrower(s) permanently leave the home or another loan maturity event occurs. When the loan becomes due, the borrower will never owe more than the appraised value of his or her home. Learn more about reverse mortgages.
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Can anyone get a Senior Equity Reverse Mortgage®?
No. To be eligible for a Senior Equity Reverse Mortgage® product, a borrower must be a titleholder of the property and age 62 or older. Learn more about who’s eligible.
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Does my credit score or income influence my eligibility?
No. There are no credit score or income requirements in order to be approved for the loan.
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What if I have an existing mortgage?
You may be eligible for a Senior Equity Reverse Mortgage® even if you still owe money on your mortgage. However, a portion of the funds you receive (or funds from another source) must be used to pay off any existing mortgage you have on the property at closing.
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Is my home eligible?
Single family, 2–4 unit multi-family, modular, manufactured, planned unit developments (PUD) and condo homes are eligible. (Manufactured homes are eligible only with the Home Equity Conversion Mortgage product.) Learn more about our two product offerings.
Home title & ownership
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Will I still own my home?
Yes. You will always retain the title until your home is sold.
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Are there homeowner’s insurance requirements?
Yes. It is your responsibility to maintain insurance. Learn more about your responsibilities.
Receiving & using your funds
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How much of my home’s equity can I access with a Senior Equity Reverse Mortgage®?
Loan amounts vary based on the Senior Equity Reverse Mortgage® product chosen, the age of the borrower(s), the appraised value of the home or the FHA national lending limit and current interest rates (national lending limit applies to the Home Equity Conversion Mortgage (HECM) product). Generally, the more valuable your home is and the older you are, the more you can borrow. Calculate how much you could borrow.
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How can I use the funds I receive?
You can use the funds for anything you choose, such as home improvements, medical expenses (including in-home care), unexpected expenses, travel or to help pay a grandchild’s college tuition. Learn more about how you can spend it.
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What are the costs for Senior Equity Reverse Mortgage® products?
Costs for Senior Equity Reverse Mortgage® products can include origination and processing fees, closing costs (just like a first mortgage) as well as a monthly service fee and possibly mortgage insurance. All of these costs can be financed into the loan. In addition, there is a counseling fee which will be collected up front or it may be financed within the loan. Learn more about fees and interest rates.
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Are the funds I receive taxable?
No. The funds you withdraw are tax-free.
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How will I access the available funds from my Senior Equity Reverse Mortgage®?
You can choose to receive your funds in a single lump sum, regular monthly installments, draw from a line of credit at your discretion, or any combination of these options.
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Can I use the funds from a Senior Equity Reverse Mortgage® to purchase a home?
Yes. With Senior Equity Reverse Mortgage® Platinum, you can use the proceeds to purchase a home. You will be responsible for making a down payment equal to the difference between the value of the home and the amount of financing you receive. You will not need to make any reverse mortgage payments while you live in the home or until a maturity event occurs. Learn more about how you can spend it.
Paying back your funds
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When will the loan become due?
Circumstances that will cause the loan to become due include, but are not limited to: 1) the last surviving borrower(s) permanently moves out of the home or passes away, 2) the last remaining borrower(s) fails to live in the home for 12 consecutive months, 3) the borrower(s) fails to pay property taxes or insurance, or 4) the property deteriorates beyond what is considered reasonable. (Please speak with an Equity Loan Officer for more details.) Learn more about loan maturity and repayment.
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Will my family or estate ever owe more than the value of my home?
No. When the loan matures, the amount owed can never exceed the current value of your home. Learn more about loan maturity and repayment.
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Will my heirs or I have to sell the home when the loan becomes due?
When the loan is due, you or your heirs will have to repay the amount owed or the appraised value, whatever is less. You or your heirs always have the option of paying off the entire balance and keeping the home (which can also be done by refinancing with a standard mortgage) or by selling the home to pay off the balance. In any case, the amount of the loan can never exceed the value of the home when the loan is due. Learn more about loan maturity and repayment.
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Will I have to make monthly payments?
No. You’re not required to make any reverse mortgage payments until the loan is due. However, you can make payments any time you choose. There are no penalties for making payments before the loan is due.
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If I decide to pay back the loan early, would I incur any penalties?
No. You can pay back the loan at any time and won’t be charged any fees for doing so.