Reverse Mortgage

What is a Reverse mortgage loan?

Usually, reverse mortgages are tailored to serve homeowners over the age of 62. Using this product, homeowners can convert their home equity into cash without selling their home or making mortgage payments. Rather than making payments to the lender, the lender makes payments to the homeowner, effectively “reversing” the typical mortgage payment structure.

Key features of
Reverse mortgages include:


To qualify for a reverse mortgage, homeowners must meet certain age and home ownership requirements. The home being mortgaged must be the primary residence of the borrower.

Home Equity

With a reverse mortgage, homeowners can receive a lump sum, regular monthly payments, a line of credit, or a combination of these options. The amount they can borrow depends on factors like their age, the appraised value of the home, current interest rates, and the specific terms of the reverse mortgage product.

No Monthly Payments

One of the key features of a reverse mortgage is that the homeowner is not required to make monthly mortgage payments. The loan balance grows over time as interest is added to the principal loan amount.

Loan Repayment

The loan becomes due when the last borrower (or eligible non-borrowing spouse) permanently leaves the home, such as by selling the home, moving to a different residence, or passing away. At this point, the loan needs to be repaid. This is usually done by selling the home, and the proceeds from the sale are used to repay the loan. If the home’s value exceeds the loan balance, the homeowner or their heirs will receive the remaining equity. If the loan balance exceeds the home’s value, the lender generally absorbs the loss.

Fees and Costs

Reverse mortgages often come with fees, including closing costs, origination fees, mortgage insurance premiums (for FHA-insured loans), and interest rates that can be higher than those of traditional mortgages. These fees can be significant and should be carefully considered when evaluating a reverse mortgage.


Before getting a reverse mortgage, homeowners are required to undergo counseling with a HUD-approved counselor. This counseling session helps them understand the terms, costs, and obligations of the reverse mortgage and considers alternative options.


A unique aspect of reverse mortgages is the non-recourse feature. This means that the borrower (or their heirs) will not owe more than the value of the home when the loan becomes due. If the home’s value is not sufficient to cover the loan balance, the lender typically absorbs the loss.


You can start the application process on our website by filling out the form online, setting up a loan consultation appointment, or calling us on the phone. There is not an application fee.
Your borrowing capacity depends on your income, expenses, creditworthiness, and the type of loan you’re applying for. We’ll work with you to find a loan amount that works with your budget and your comfort level.
We will typically work through this together. You will want to lock in once you are under contract on your home and your loan has been uploaded to the lender.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Closing costs include fees for services such as title company costs, setting up your escrow account (property taxes and insurance), origination fees from lender for underwriting, etc. We typically have the lender pay our origination fee to help keep your closing costs lower.
We offer a range of home loan options, including Conventional, FHA, VA, USDA, Jumbo, Bank Statement, Asset Qualifier, Refinance, Reverse Mortgage, and so many others. Each loan type has unique features to suit different financial situations. Let our expertise guide you to find the one that is right for you.
Loan Approval: You receive final approval from the lender (clear to close). Closing: The final paperwork is signed by all parties and the loan is then funded and recorded.
As mortgage brokers we have access to 60+ wholesale lenders providing you with multiple options for all your home buying needs with lower rates and exceptional service. At Loans By Vicky, we stay in constant contact with you throughout the entire process. We are still here for you even after you close. We love making friends one mortgage at a time!

Get Pre-Approved quickly for your Reverse Mortgage loan through our app!

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