Home Max Blog

What makes it a "reverse" mortgage?

A reverse mortgage is exactly what its name implies — a loan whose features make it essentially the reverse of a traditional "forward" mortgage. Instead of paying your lender, your lender pays you.

Having spent years paying for your home now let your home PAY you. However you plan to use your equity — whether traveling, paying medical expenses, improving your home, or just adding a bit of cushion to your monthly budget — you'll have a golden opportunity to so.

What happens to my home?

Nothing happens to your home — you remain the owner for as long as you live there, and you will never be forced to move. If you decide to sell or move from your home, the outstanding balance of your reverse mortgage will become due, just as it would with a traditional mortgage.

Who is eligible?

All owners listed on the home's title must be at least 62 years of age and occupy the home as their principal residence.

Speaking with an approved reverse mortgage counselor is another important eligibility requirement. The Department of Housing and Urban Development (HUD) supervises counseling agencies that can work with you in person or, more commonly, over the phone. Your Home Max Mortgage reverse mortgage consultant can provide you with a list of authorized counselors.

Remember the Four Nevers.  With a reverse mortgage, the borrower will

• Never make monthly payments
• Never relinquish title or ownership of home
• Never owe more than the value of the home
• Never have any restrictions on how the tax free proceeds are used