Reverse mortgage FAQ

A reverse mortgage (for most people, an FHA HECM) lets eligible homeowners 62+ convert part of their home equity into a lump sum, a line of credit, monthly draws, or a mix — without a required monthly principal-and-interest mortgage payment. You remain the homeowner and stay on title while you meet the loan terms. You must live in the home as your primary residence, pay property taxes and homeowners insurance, and maintain the property. How much you may access depends on age, rates, the home, and program rules. This is not a commitment to lend.

Typical HECM basics: at least one borrower is 62 or older; the home is your primary residence; there is enough equity after paying off existing liens; you can keep up with taxes, insurance, and upkeep; and you complete independent HUD-approved counseling. A financial assessment and property eligibility still apply. Vacation homes, second homes, and most rentals do not qualify. Being 62+ does not guarantee approval.

There is no required monthly principal-and-interest payment on a HECM while you meet the loan terms. You still pay property taxes, homeowners insurance, and maintenance. Failure to meet those obligations can lead to default. Some borrowers choose to make optional payments; that is a conversation, not a requirement.

You remain responsible for property taxes, homeowners insurance, and upkeep. A reverse mortgage does not pay those for you unless you set aside funds or use proceeds that way — and even then, the obligation is still yours. If taxes or insurance lapse, the loan can become due. HUD counseling covers this in detail.

You stay on title. When the loan becomes due (for example, when the last borrower permanently leaves the home), the balance is repaid from the home. A HECM is structured as a non-recourse loan under program rules: heirs are typically not personally liable for more than the home is worth. Heirs can usually sell to repay, refinance to keep the home, or convey the property. Remaining equity after payoff belongs to the estate. A counselor will explain options in your situation.

Both use home equity. A HELOC often costs less to open but usually requires monthly payments and can be frozen or reduced. A HECM has no required principal-and-interest payment while you meet terms, but it has program costs, FHA rules, and required counseling. Which fits depends on income, how long you will stay, and what you need the money for. Compare both; do not assume one is always better. See the short comparison on the education page.

Yes — HECM for Purchase is a program that lets eligible buyers 62+ purchase a primary residence using reverse-mortgage proceeds plus a substantial down payment from approved funds. Counseling and program rules still apply. It is not for a vacation home. Large down payment required. This is not a promise you will qualify.

Yes. Sons, daughters, and other advisors are welcome on the call with Angie. Many families also join HUD counseling. There is no pressure to decide on the first conversation.

Yes, for an FHA HECM. Federal law requires counseling from an independent HUD-approved counselor — not hired by the lender. Call 800-569-4287 or use HUD’s counselor search. Angie can explain the process in plain English but cannot replace counseling.

No. She grew up in the Fort Walton Beach area and has lived on this stretch of the Florida Panhandle her whole life. She talks with homeowners from Tallahassee to Pensacola and serves all of Florida. The home must still be a primary residence.