What is a reverse mortgage?
If you are 62 or older and have built up at least 40-50% equity in your home, a reverse mortgage may allow you to borrow against the equity in your home. Instead of continuing to make mortgage payments, you get paid back the money you already have in it—that’s the reverse part.
You never have to repay the loan as long as you live in your home and you can choose to receive the cash disbursements as monthly income, a line of credit, or a lump sum. Also, because the FHA/HUD program is backed by the US government, you will never owe more than the value of your home—even if you receive monthly payments for the next 20 years. Finally, you keep title to your property so it stays part of your estate.