WHAT IS A REVERSE MORTGAGE?
A reverse mortgage is a type of home loan that lets the homeowner convert the equity in his or her home into cash. There are three ways this equity can be paid to the homeowner: in one lump sum, in a series of payments, or as a supplement to Social Security or other retirement funds. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as a principal residence. HUD's reverse mortgage provides these benefits, and it is federally-insured.
Learn more about reverse mortgages in the Loan Info section.
See our Reverse Loan Blog.
