Reverse Mortgages for Homeowners 62 and Older, Explained Clearly
Phil Hagey, a loan officer with West Capital Lending, helps homeowners, typically age 62 or older, understand whether a reverse mortgage fits their retirement plans. A reverse mortgage lets you turn part of your home equity into funds while you continue to live in the home.
A reverse mortgage is a loan. You keep the title, and you remain responsible for property taxes, homeowners insurance, HOA dues if any, and keeping the home in good repair. If those obligations aren't met, the loan can become due and the home could be subject to foreclosure. The loan balance grows over time as interest and fees are added.
I'll walk you, and your family if you'd like, through how it works, what it costs, and the alternatives. There's no rush. This is a big decision, and you should feel completely comfortable before moving forward.
Who it fits
- Homeowners typically age 62 or older (age 62+ for a HECM)
- People who plan to stay in their home long-term as their primary residence
- Clients with substantial equity who want to supplement retirement funds
- Homeowners who want to pay off an existing mortgage with reverse mortgage proceeds
How I help
- I explain how a HECM (FHA-insured reverse mortgage) works in plain language
- I make sure you know about the required HUD-approved counseling session before you apply
- I go over all costs, including mortgage insurance, origination, and closing costs
- I review your ongoing obligations: taxes, insurance, and upkeep
- I'm happy to include family members or your financial advisor in our conversations
Protect yourself
No one should pressure you into a reverse mortgage, including a contractor selling repairs or an ad claiming government endorsement. HUD, FHA and the VA don't sell reverse mortgages. If something feels off, talk with a HUD-approved counselor or report it to the CFPB or FTC.
Alternatives to discuss
Downsizing, a HELOC or home equity loan, a cash-out refinance, or local tax-deferral and repair programs.
Compare your options
Frequently asked questions
Who qualifies for a reverse mortgage?
Reverse mortgages are typically for homeowners age 62 or older. For a HECM, at least one client must be 62 or older, live in the home as a primary residence, have significant equity, and be able to keep up with taxes, insurance, and maintenance. A lender will review your finances. Phil Hagey can help you see whether you may qualify.
Do I still have to pay anything with a reverse mortgage?
Yes. You must keep paying property taxes, homeowners insurance, any HOA dues, and maintain the home. Failing to do so can cause the loan to become due. Phil Hagey reviews these obligations with every client up front.
When does a reverse mortgage have to be repaid?
The loan becomes due when the last client on the loan sells the home, passes away, or moves out permanently, including a move to assisted living or a nursing home for more than 12 consecutive months. It can also become due if loan terms such as paying taxes and insurance aren't met. The home can be sold to repay it, or heirs can repay it to keep the home.
What if the loan balance ends up higher than the home's value?
With a HECM, neither you nor your heirs owe more than the home is worth when it's sold to repay the loan. FHA mortgage insurance covers the difference. Heirs who want to keep the home have specific repayment options that a HUD-approved counselor can explain.
Is counseling required for a reverse mortgage?
Yes. HECM clients must complete a session with a HUD-approved counseling agency before applying. Phil Hagey can share how to find a counselor; the counselor is independent of the lender.
Will a reverse mortgage affect my taxes or benefits?
Proceeds generally aren't taxable income, but they may affect eligibility for need-based programs such as Medicaid or SSI. Talk with a benefits or tax professional.
Can I cancel a reverse mortgage after closing?
For most reverse mortgages, you have three business days after closing to cancel for any reason.
Want to understand your options without any pressure? Call Phil at 949-864-1497 to talk it through. Family members are welcome to join.
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Disclosure: These materials are not from, and were not approved by, HUD, FHA, or any government agency. A reverse mortgage is a loan; the balance increases over time. Clients must live in the home as their primary residence and keep current on property taxes, homeowners insurance, HOA dues, and maintenance, or the loan may become due and payable. HECM counseling is required.