Borrowers must meet the ongoing obligations of the loan such as paying property taxes, homeowner’s insurance or other required property charges, and must maintain the property per HUD requirements.

A Reverse Mortgage incorporates home equity into the homeowner's retirement strategy. This uses a portion of the equity that could be passed on to the heirs to the estate. If the borrower chooses to make no payment, the loan balance increases and the equity will decrease over time.

While a Reverse Mortgage has no affect on Medicare or Social Security benefits, it can have an affect on the eligibility for low income, needs-based programs such as Medicaid. If you have questions regarding Medicaid benefits and a Reverse Mortgage, please seek the council of a professional financial advisor.*

For those itemizing tax deductions, a reverse mortgage can eliminate the deduction for home interest if no interest is paid out of pocket. However, if the homeowner pays the upfront fees and the accruing interest, the homeowner deduction may be available to them in the year the interest is paid.*

While Jumbo Reverse Mortgages carry similar features, only the Home Equity Conversion Mortgage is a non-recourse, FHA-fully insured loan.