Reverse mortgages have changed a lot over the years.
Reverse mortgages have a reputation, and some of that reputation is earned by how the industry used to operate.
It’s come a long way since then.
A reverse mortgage lets you turn part of your home equity into cash, without selling the home and without a monthly mortgage payment. Instead of you paying a lender, the lender pays you, in whatever form makes the most sense for you, lump sum, line of credit, monthly, or some combination.
You keep the title, you keep living there, and you're still responsible for property taxes, insurance, and general upkeep, same as any homeowner. The loan usually gets settled later, when you sell, move out for good, or pass away.
There are a few different options for reverse mortgages, depending on your situation.
HECM
This is the one most people mean when they say "reverse mortgage." It's the most common, backed by the FHA, and fits most situations.
Jumbo (or proprietary)
For higher-value homes where a standard HECM might not get you access to enough of your equity. There are about 15 variations of jumbo options
HECM for Purchase
For people who aren't trying to stay put. If you're thinking about moving, this lets you buy without taking on a monthly payment and without draining savings.
Five Steps to Your Funds
Talk it through
During the free consultation, we go over your situation and figure out which option, if any, fits.
HUD Counseling
Required before anything moves forward. You'll meet with a counselor independent of me and NAF.
Apply for the reverse mortgage
You pull together documentation, I walk you through what's needed.
Underwriting
Your loan gets reviewed
Closing
After your loan is approved and you sign, and your funds come the way you chose, lump sum, line of credit, or monthly.
What it takes to qualify for a reverse mortgage
A few things come into play:
Your age
How much equity you have in your home
Your ability to keep up with ongoing costs like property taxes, homeowners' insurance, and HOA dues if you have them.
For proprietary programs, requirements can vary by lender and sometimes include a credit minimum.
There's more to it than a checklist can really capture, which is why we start with a conversation instead of a form. I'll walk through your specific situation with you so you know where you actually stand, not just where a general list would put you.
Testimonials
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"Dan was always ready to answer questions and asked for certain items as well as explained everything clearly.
Dan answered questions outside his normal business hours which is awesome to me as we are 3 time zones apart. Dan is very encouraging and very patient with our questions. He helped reassure us as we worked through all the details of the loan process. Thank you again Dan!”
– George F.
Bradenton, Florida -
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"The ability to pursue and secure a HECM on our primary property is a true blessing.
As a retired couple, John and I have always worked hard to secure financial stability for ourselves and our family. Now in the "golden years" of our lives, we needed economic security, in the event of an unplanned, financial demand needing to be met. When Dan Biller explained the advantages of the HECM loan, we new this was our answer.
We feel so blessed to have met and worked with Dan. His patience and actions to help us through all the paper work and loan process was phenomenal. He truly is a great asset to New American Funding! I will recommend your company and Dan to our friends and family who have any R/E financing needs.”
– Adelina A F.
San Jose, California -
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“Dan went above and beyond in keeping our file active.
He was very patient and supportive. He was clear with our options and helped us determine what best suited our needs and situation.”
– Katherine G. P.
Los Altos, California
Common Questions
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Yes. Your name stays on the title, and you keep living there as long as you're keeping up with taxes, insurance, and basic maintenance. A reverse mortgage doesn't change ownership, it's a loan against the equity you've built.
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Keep up with your property taxes, insurance, and home maintenance, that's the core of it. As long as you do, you stay in the home. The loan only comes due if you sell, move out permanently, or pass away.
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Generally, no. The funds aren't considered taxable income, so they typically won't push you into a higher tax bracket or reduce those benefits. If you're on something need-based, like SSI or Medicaid, that's a different situation, and worth talking through before you move forward.
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However works best for you: a lump sum, a line of credit, monthly payments, or some mix. We'd figure out which makes sense based on what you're trying to do.
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The loan gets settled, usually through selling the home or from the estate after you pass away. If you have heirs, they can pay it off and keep the home, or sell it and keep whatever's left over.
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No credit score requirement. What matters more is your age, how much equity you have, and whether you can cover taxes and insurance going forward.
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It's a required step before closing, a conversation with a counselor who has no connection to me or NAF. It's there to make sure you understand the loan before you commit to it.
Every homeowner is different, and so is the right program.
Let's find the one for you.