While doing your research about a reverse mortgage loan, you may have seen terms like “government-insured” or “FHA-approved” and wondered what the government has to do with the loan.  The only reverse mortgage loan insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM) and is only available through a Federal Housing Administration (FHA)-approved lender.1 What...

Part of the reverse mortgage process involves an appraisal to determine your home’s value.  The amount of money you receive from a reverse mortgage is determined by your age and the home’s value. When having your home appraised, there are a few things you should know and prepare for to make the appraisal go as smoothly as possible. The Appraisal The Federal Housing Administration (FHA) requires...

A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), is a type of loan that allows homeowners (62 or older) to convert part of the equity in their homes into tax-free income. Reverse mortgages can be a great financial tool for many homeowners; however, it is a very important financial decision. So how do you determine if a reverse mortgage is right for you? You may benefit...

Retired adults commonly worry about outliving their retirement savings, and that worry can increase with adverse economic conditions. With inflation at a 40-year high, hitting a record 9.1% in June 20221, combined with a volatile stock market, it can leave many wondering what options they have to supplement their retirement savings. Home Equity Line of Credit A Home Equity Line of Credit (HELOC)...

“How much money can I get?” is usually one of the first questions adult homeowners ask when researching a reverse mortgage loan. A few key factors are used to calculate the loan amount that a borrower can receive.  Keep in mind, lenders can’t allow borrowers to access 100% of their home’s equity. The funds received from a reverse mortgage will only be a portion of the home’s equity. To determine...