Reverse Mortgage

A reverse mortgage is a home loan that lets qualifying older homeowners convert part of their home equity into cash without a required monthly mortgage payment, as long as they meet loan obligations such as living in the home as a primary residence and paying property taxes, insurance, and maintenance. The most common U.S. product is the FHA-insured HECM.

Instead of you making monthly payments to the lender, the lender advances funds to you (or holds them in a line of credit). Interest and applicable fees usually accrue on the balance. You keep the title. The loan is typically repaid when you sell, permanently move out, or pass away — often from home sale proceeds. Heirs on a HECM are generally protected by non-recourse rules so they are not personally liable beyond the home’s value at repayment.

For a HECM, at least one borrower is typically age 62 or older, the home must be a primary residence that meets property standards, you need enough equity after paying off existing liens, and you must complete HUD-approved counseling. Proprietary jumbo programs may allow younger borrowers (often 55+) with different rules. Final eligibility requires a full lender review.

Most large national banks no longer originate reverse mortgages. Today, specialty reverse-mortgage companies and FHA-approved lenders originate most HECMs. Ennkar is a licensed reverse mortgage lender (NMLS #976231). Compare licensing, counseling process, and Loan Estimates — see our compare hub for criteria.