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Reverse Mortgage Information

A reverse mortgage is a popular loan option for senior homeowners over the age of 62. It allows these senior homeowners to tap into the home equity that they have acquired. There are no monthly payments, but homeowners are still responsible for property taxes, insurance, and maintenance. All repayment of the loan is deferred until the homeowner dies, sells, or moves out of the home. Because there are no monthly mortgage payments and homeowners can receive their home’s equity as tax-free cash this particular type of loan has seen over 1,000,000 seniors take advantage of it.

How Does a Reverse Mortgage Work?

To qualify for a reverse mortgage loan, you must own a home, be at least 62 years old and have equity in your home. The loan works by making payments to the borrower based upon a percentage of the equity that has been built up in the home. The loan is repaid when the borrower sells the home, moves out of the home or dies. The primary factors which impact the loan amount for which you may be eligible for include your age, the value of your home, and interest rate.

What Are the Pros and Cons of a Reverse Mortgage?

Before proceeding with a reverse mortgage, it’s important to understand the pros and cons. Some of them include:


  • You continue to live in your home and retain ownership to your home as long as you continue to pay your property taxes, insurance, and maintenance.
  • You will receive the proceeds of the loan as tax-free cash in which you can use as you see fit.
  • You do not make any monthly mortgage payments during the course of the loan.
  • A reverse mortgage is a non-recourse loan. Neither you nor your heirs are liable for any amount of the mortgage that exceeds the value of your home.
  • You can choose how you would like to receive the loan proceeds. There are several methods in which you can receive the proceeds of the loan.


  • Fees associated with the loan are generally higher than with other financial products.
  • The balance of the loan increases over time.

What is the Process of Getting a Reverse Mortgage?

The process is relatively straightforward and simple: 

  1. Research and identify companies that may be right for you. Fill out an online form or give them a call to start the process.
  2. Discuss what options may be available to you; what you may qualify for; what the time required to close your loan looks like and to have your questions answered.
  3. Attend a counseling session from a licensed third-party counseling agency. Housing and Urban Development (HUD) maintain a list of counselors available in your state.
  4. Complete an application with the company that you have selected.
  5. Underwriting and loan processors then take over and handle everything from getting your house appraised to ensuring that all your paperwork is in order.
  6. Close your loan and choose your disbursement options. At this stage, you have completed the process and can now choose exactly how you’d like to receive the proceeds of the loan.

The Product/Program information contained here is educational only and not a commitment to lend. All loans have to be reviewed by a licensed underwriter. Rates and available loan programs are subject to change without notice.

Home Pad Lending LLC is a licensed Mortgage Broker. NMLS 1857677. This is not a commitment to lend. All loans subject to credit approval. Guidelines subject to change without prior notice. This information is provided to assist business professionals only and is not an advertisement extended to the consumer as defined by Section 226.2 Regulation Z.-EOE. Equal Housing Lender.
3233 E Chandler Blvd, Ste 9, Phoenix, AZ 85048. Main: 888-211-7556

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Contact your loan officer for more information.