Frequently Asked Questions

For a HECM (federally insured reverse mortgage), at least one borrower must be age 62 or older. Some proprietary (jumbo) reverse mortgage programs allow borrowers as young as 55. The younger the youngest borrower, the lower the available loan amount, as the program is designed to account for a longer expected loan term.

No. You can have an existing mortgage. However, any outstanding mortgage balance must be paid off at or before closing — frequently using the proceeds from the reverse mortgage itself. If the reverse mortgage proceeds are sufficient to pay off the existing balance, this can happen at closing with no out-of-pocket cost.

Yes. You retain the title to your home and remain the owner. The lender holds a lien on the property, just as with a traditional mortgage. You are responsible for paying property taxes, homeowner's insurance, HOA fees (if applicable), and maintaining the property.

The loan becomes due and payable when: the last remaining borrower permanently leaves the home (sells, moves to assisted living, or passes away); the borrower fails to meet the loan obligations (such as not paying property taxes or insurance); or the property falls into disrepair. At that point, the loan is typically repaid by selling the home.

When the loan becomes due, your heirs have options. They can sell the home to repay the loan and keep any remaining equity, or they can refinance the reverse mortgage into a conventional mortgage to keep the home. A HECM is a non-recourse loan — your heirs will never owe more than the lesser of the loan balance or 95% of the home's appraised value at that time.

Before a HECM loan can close, federal law requires all borrowers to complete a counseling session with a HUD-approved housing counselor. The counselor is independent of the lender and reviews your financial situation, explains the program, and discusses alternatives. Sessions are typically conducted by phone and are free or low-cost.

The amount available — called the Principal Limit — depends on the age of the youngest borrower, the home's appraised value (up to the FHA lending limit for HECM), and current interest rates. The older you are and the more equity you have, the more you may be able to access. An Ennkar loan officer can walk through an estimate at no cost.

For a HECM, funds can be received as a lump sum (fixed rate only), a line of credit (which grows over time), monthly payments for a set term, monthly payments for as long as you live in the home (tenure), or a combination of the above. Proprietary (jumbo) reverse mortgage programs typically offer a single lump-sum disbursement. A licensed loan officer will walk through the available options for your specific program.

A jumbo — also called proprietary — reverse mortgage is a private loan product not insured by the FHA. It is designed for homeowners with higher-value properties who want to access equity beyond the FHA lending limit that applies to HECM loans. Many jumbo programs are available to qualifying borrowers as young as age 55, compared to the age 62 minimum for the federally insured HECM. Program terms, loan limits, and requirements vary by lender and product.

Reverse mortgage proceeds are loan proceeds, not income, and generally do not affect Social Security or Medicare benefits. However, if you receive needs-based benefits such as Medicaid or Supplemental Security Income (SSI), receiving a lump sum could affect your eligibility. Consult a benefits counselor or financial advisor.

Costs may include an origination fee, FHA mortgage insurance premium (MIP) for HECM loans, closing costs (appraisal, title, recording fees, etc.), and ongoing interest on the loan balance. Many costs can be financed into the loan. A full breakdown will be provided in the Loan Estimate and closing disclosure.

Yes. The HECM for Purchase (H4P) program allows you to buy a new primary residence using a reverse mortgage. You provide a down payment — typically from the sale of your current home — and the HECM funds the remainder. No monthly mortgage payment is required.

That depends on your individual financial situation, goals, and plans. A reverse mortgage can be a valuable tool for the right homeowner — but it is not the right fit for everyone. We encourage speaking with a HUD-approved counselor, a financial advisor, and a licensed Ennkar loan officer before making any decision. There is no obligation.