A reverse mortgage is a type of loan that allows homeowners, typically those who are aged 62 or older, to convert a portion of their home equity into cash. Unlike a traditional mortgage where the borrower makes monthly payments to the lender, with a reverse mortgage, the lender makes payments to the borrower. The loan is repaid when the homeowner sells the property, moves out, or passes away.

To be eligible for a reverse mortgage, you must be at least 62 years old, own your home outright or have a low mortgage balance that can be paid off with the proceeds from the reverse mortgage, and live in the home as your primary residence. Additionally, you must meet certain financial requirements, such as demonstrating the ability to pay property taxes and homeowners insurance.

The amount of money you can receive from a reverse mortgage depends on several factors, including your age, the value of your home, current interest rates, and any outstanding mortgage balance. Generally, the older you are and the more valuable your home, the more money you can access through a reverse mortgage.

With a reverse mortgage, repayment is not required as long as you continue to live in the home as your primary residence. However, if you sell the property, move out, or pass away, the loan must be repaid. Typically, the loan is repaid through the sale of the home, with any remaining proceeds going to the homeowner or their heirs.

Reverse mortgages are regulated by the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD). These agencies set guidelines and rules to protect borrowers and ensure the stability of the reverse mortgage program. It is important to work with a reputable lender who adheres to these regulations.