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You will complete a financial assessment with your lender to discern if a HECM loan is your best option. They will examine your current expenses and income to determine if you can continue paying your home insurance, property taxes, maintenance expenses, and HOA dues (if applicable).

You are required, by Federal law, to complete a third-party and HUD-approved counseling session. An approved counselor will describe the pros and cons of reverse mortgages, how HECMs work, taxes, obligations, payment, and any additional information you may need to make a sound and educated financial decision. You will receive a certificate after you complete your session with a counselor.

When it is time for repayment, the Federal Housing Administration (FHA) will pay the difference. You won’t have to pay the lender more than the amount borrowed or the current home value (whichever value is less).

In the event that the borrower passes away, the remaining spouse can continue to defer reverse mortgage loan repayment so long as they continue paying the property taxes, home insurance, HOA dues (if needed), and maintenance costs.