What Is a Reverse Mortgage Loan?

Most Reverse Mortgage Loans today are federally insured through the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (“HECM”) program, which is a non-recourse mortgage loan for homeowners aged 62 and older. It converts about 30-70% of a client’s equity into cash based on the age of the youngest borrower. 
The borrower never gives up ownership or control of the home, any mortgage balance is paid off, and any remaining loan proceeds are usually tax-free.* No monthly payments are required except for taxes, insurance, and maintenance. If the mortgage balance exceeds the value of the home, FHA mortgage insurance protects the homeowner and their heirs.
With a Reverse Mortgage Loan, the property, not the borrower, is responsible for paying off the loan. The borrower signs a release of personal liability at closing.