What Is a Reverse Mortgage?

A short, calm overview for Florida homeowners 62+ — what a HECM is, why counseling matters, and the myths that worry families most.

This page summarizes publicly available consumer information about FHA’s Home Equity Conversion Mortgage (HECM). It is not from HUD or FHA and has not been approved by any government agency.

A short overview — in plain English

If you're 62 or older and own your home, a reverse mortgage can let you tap part of your equity without selling — and without a required monthly principal-and-interest mortgage payment. You stay on title as the homeowner while you meet the loan terms.

The only reverse mortgage insured by the U.S. federal government is the HECM (Home Equity Conversion Mortgage). How much you may access depends on age, rates, and the home's value (within program limits). Funds can often come as a lump sum, a line of credit, monthly draws, or a mix.

*You must continue to live in the home as your primary residence, pay property taxes and homeowners insurance, and maintain the property.

Who typically qualifies?

  • At least one homeowner is age 62+
  • The home is your primary residence with enough equity
  • You can keep up with taxes, insurance, and upkeep
  • You complete independent HUD-approved HECM counseling

What you keep

You remain the homeowner

You stay on the deed and retain title.

The right to live there

As long as it's your primary residence and you meet your obligations.

Any remaining equity

When the loan is paid off, you or your heirs keep what's left.

Want more depth on HECM for Purchase, reverse vs. HELOC, costs, and program details? Start with the myths below, or open the fuller corporate Knowledge Center:

Read common myths Deeper HECM education (Knowledge Center) ↗

Still wondering if this fits your home?

Angie can walk through the basics in plain English and help you prepare for HUD counseling — free, no pressure.

Ask Angie a question →

Required by federal law

HUD-approved counseling comes first

Before an FHA HECM, you must complete counseling with an independent HUD-approved counselor — not hired by the lender. You'll get a counseling certificate lenders need to proceed.

I can explain the overall process in plain English, but I cannot replace HUD counseling — schedule your counselor independently, at your own pace.

Common questions & myths

Click any question to expand the answer.

"Is HUD counseling really required?"

Yes — for a HECM. Federal law requires counseling from an independent HUD-approved counselor before you obtain an FHA reverse mortgage. The counselor is not hired by the lender. You get a HECM Counseling Certificate when complete. Find help at 800-569-4287 or the links under Official resources.

"The bank will own my home."

False. You retain title to your home. You remain the homeowner. The lender places a lien against the property — just like a regular mortgage — but you remain the owner.

"I can be forced out of my home."

Not if you meet your obligations. As long as you pay property taxes, keep insurance current, maintain the home, and live in it as your primary residence, you can stay in your home.

"My kids will inherit my debt."

Generally no — not personally. 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. When the loan comes due, they can sell the home to repay it, refinance to keep it, or convey the property to the lender and walk away without a personal bill for any shortfall — even if the loan balance exceeds the home's value. Your counselor will explain the options in your situation.

"I can't get one if I still have a mortgage."

Often you can. Existing mortgages typically get paid off with the reverse mortgage proceeds. That's how many borrowers eliminate their monthly mortgage payment.

"They're a last resort."

Not always a last resort. For some retirees, a HECM — especially a line of credit — can be one planning tool among several: a way to access equity without a required monthly principal-and-interest payment, while still covering taxes, insurance, and upkeep. On many HECM lines of credit, unused funds can grow under program rules. Whether it fits still depends on your goals, how long you’ll stay, and the costs — which is why HUD counseling and a careful conversation matter.

"They have huge fees."

Costs are regulated and disclosed. Like any mortgage, there are closing costs (origination fee, FHA insurance premium, appraisal, title). Most can be financed into the loan. I'll give you a written estimate before you decide anything.

"Can I use a reverse mortgage to buy a house?"

Yes — with HECM for Purchase. Buyers 62+ can buy a primary residence using reverse mortgage proceeds plus a large down payment from approved funds. Counseling and program rules still apply. For a deeper walkthrough, see the corporate Knowledge Center ↗.

"Isn't a HELOC simpler?"

Sometimes — not always. HELOCs often cost less to open but usually require monthly payments and can be frozen. A HECM has no required P&I payment while you meet terms, but it has program costs and counseling. We can compare both on a call, or start with the deeper guides in the Knowledge Center ↗.

Is a reverse mortgage right for you?

It depends. A reverse mortgage often makes sense if you:

  • Plan to live long-term in your primary residence
  • Want to eliminate or reduce monthly principal-and-interest mortgage payments
  • Need supplemental retirement income or a financial cushion
  • Want to preserve other retirement assets by tapping home equity instead
  • Are facing a cash-flow gap (medical costs, home repair, family support)

It's probably not a good fit if you:

  • Only need money for a short time and plan to sell or move again soon
  • Want to leave the home free and clear of any mortgage for your heirs
  • Can't keep up with taxes, insurance, and maintenance even with the loan

HUD counseling is designed to help you weigh these trade-offs with an independent expert — before you sign anything with a lender.

Learn from the source

Official HUD & FHA resources

Independent government and consumer pages. Open them in a new tab, take notes, and bring questions to counseling or to your call with Angie.

  • FHA HECM for seniors (HUD)

    Overview of the only federally insured reverse mortgage program.

    Open on HUD.gov

  • Find a HECM counselor

    Search HUD’s housing counseling tools, or call 800-569-4287.

    HECM counselor search

  • Nationwide HECM counseling intermediaries

    Agencies that provide telephone and face-to-face HECM counseling across the country.

    HUD Exchange list

  • CFPB reverse mortgage resources

    Consumer Financial Protection Bureau guides and questions to ask before you borrow.

    consumerfinance.gov

  • FTC: Avoid reverse mortgage missteps

    Federal Trade Commission tips for consumers and housing counselors on common pitfalls.

    ftc.gov guidance

  • More HECM education from Florida's Best Reverse

    Corporate Knowledge Center with deeper HECM topics (purchase, eligibility, process, and more). Useful if you want more detail after this short overview.

    Open Knowledge Center

Important: This website is educational marketing for Angie Scott. It is not a substitute for HUD-approved counseling, legal advice, or tax advice. This material is not from HUD, FHA, or any government agency and has not been approved by HUD, FHA, or any government agency. Program rules can change — always verify details with your counselor and an FHA-approved lender.

Read the official info — then talk it through

Angie can walk through HECM basics in plain English and help you prepare for HUD counseling. Free. No pressure. Family welcome on the call.

Get My Free Estimate Call 850-974-7854
Call Angie