If you're 62 or older and own your home, a reverse mortgage can eliminate your monthly payment, provide tax-free income, and give you the retirement flexibility you've earned.
A Home Equity Conversion Mortgage (HECM) — the most common reverse mortgage — is an FHA-insured loan that lets you convert your home equity into cash without selling your home or making monthly payments.
You must be at least 62 years old. If there's a non-borrowing spouse under 62, special protections still apply.
No monthly mortgage payment required — ever. The loan is repaid when you sell the home, move out, or pass away.
The most common reverse mortgage is backed by the Federal Housing Administration — giving you protections banks can't offer.
You retain title and can stay in your home as long as it remains your primary residence and you maintain it.
You or your heirs will never owe more than the home is worth — even if the loan balance exceeds the property value.
Reverse mortgage proceeds are generally not considered taxable income. Consult your tax advisor for your specific situation.
Receive your entire available proceeds at closing. Best for paying off an existing mortgage, large one-time expenses, or funding a major purchase.
Receive fixed monthly installments — for a set period or for as long as you live in the home. Acts like a pension funded by your own equity.
The most popular option. Draw funds as you need them. The unused portion actually grows over time — giving you a larger credit line the longer you wait.
Reverse mortgages have a bad reputation based mostly on outdated information. Today's HECM programs have strong consumer protections. Here's what's actually true.
False. You retain full title to your home. The lender has a lien — just like any mortgage — but ownership stays with you.
You live there, maintain it, pay property taxes and insurance. The loan is repaid when you choose to sell or vacate.
Not true. If the home sells for more than the loan balance, heirs keep the difference. It's non-recourse — they never owe more than the home is worth.
If the home is worth less than the loan, FHA covers the shortfall. Your estate is never in deficit because of a reverse mortgage.
Many reverse mortgage borrowers have significant assets. They use it as a strategic retirement planning tool — not a last resort.
Financial advisors increasingly recommend reverse mortgages as part of a diversified retirement income strategy, especially the line of credit option.
There's no pressure here — just a real conversation. We'll look at your equity, your goals, and whether a reverse mortgage is actually the right move. Brian has helped dozens of OC homeowners use this program to improve their retirement income.
*This is not tax or legal advice. Consult a qualified advisor for your situation. Reverse mortgage proceeds are generally not included in gross income for federal tax purposes.