Turn your home’s equity into financial flexibility — without giving up the keys.

A reverse mortgage allows qualifying homeowners 62 and older to convert a portion of their home equity into tax-free funds. It’s a retirement-focused option designed to reduce monthly obligations, strengthen long-term financial stability, and provide access to money when you need it most.

Whether you’re looking to supplement income, manage expenses, or create a more comfortable retirement plan, a reverse mortgage can offer meaningful support while you continue living in the home you love.

How a Reverse Mortgage Works

A reverse mortgage lets you access your home’s equity without taking on monthly mortgage payments. Instead of paying the lender each month, the loan balance increases over time and is typically repaid when the home is sold, the borrower moves out permanently, or the borrower passes away.

You remain the homeowner and are responsible for maintaining the property, paying property taxes, and keeping homeowners insurance current.

Ways You Can Use Reverse Mortgage Funds

• Debt consolidation: Use funds to pay off high-interest or burdensome monthly debts and simplify your financial picture.
• Home improvements: Make upgrades, repairs, or accessibility modifications that support long-term comfort and safety.
• Retirement income planning: Strengthen your financial strategy with additional cash flow or a standby line of credit.
• Foreclosure avoidance: Eliminate required monthly mortgage payments and reduce financial strain.

Benefits of a Reverse Mortgage

• No monthly mortgage payments required
• Access funds as a lump sum, monthly income, or line of credit
• Stay in your home while using its equity
• Flexible options tailored to retirement goals
• Tax-free proceeds
• Can help reduce financial pressure in retirement

Eligibility Requirements

To qualify for a reverse mortgage, homeowners generally must meet the following criteria:

• Age 62 or older
• Live in the home as their primary residence
• Have sufficient home equity
• Complete HUD-approved counseling
• Be able to maintain taxes, insurance, and property condition

What Happens to the Home Later?

When the loan becomes due, your heirs have options:

• Sell the home and use the proceeds to repay the loan
• Refinance the balance if they wish to keep the property
• Pay off the loan directly

Heirs are not personally responsible for any amount beyond the home’s value.

Reverse Mortgage vs. Traditional Mortgage

A traditional mortgage requires monthly payments that reduce your loan balance over time. A reverse mortgage does the opposite — it provides income or accessible funds, and the balance increases over time. This can be a strategic option for retirees who want flexibility without adding monthly obligations.

Is a Reverse Mortgage Right for You?

A reverse mortgage can be a powerful tool for homeowners who want to stay in their home long-term, need additional retirement income, prefer fewer monthly financial obligations, and have significant equity they’d like to use strategically.

If you’re exploring ways to strengthen your retirement plan, our Brentwood team can help you understand your options and make a confident, informed decision.

Start the Conversation

Your financial goals deserve clarity, care, and expert guidance. Contact our team today to schedule a reverse mortgage consultation and explore whether this option aligns with your retirement strategy.

Frequently Asked Questions

What is a reverse mortgage?
A reverse mortgage is a loan for homeowners 62 and older that allows them to convert part of their home equity into tax-free funds without making monthly mortgage payments.

Do I still own my home with a reverse mortgage?
Yes. You remain the homeowner and retain full ownership. You must continue paying property taxes, homeowners insurance, and maintain the home.

How do I receive the funds?
You can receive funds as a lump sum, monthly payments, or a flexible line of credit.

When does the loan need to be repaid?
The loan is typically repaid when you sell the home, move out permanently, or pass away.

Can my heirs keep the home?
Yes. Heirs can refinance the loan balance or pay it off directly if they wish to keep the property.

Are reverse mortgage funds taxable?
No. Reverse mortgage proceeds are generally considered loan advances and are not taxable income.

What happens if the loan balance becomes higher than the home’s value?
Reverse mortgages are non-recourse loans. You or your heirs will never owe more than the home’s value.

Do I need good credit to qualify?
Credit requirements are more flexible than traditional mortgages. Lenders mainly review your ability to maintain taxes, insurance, and property upkeep.

Can I use a reverse mortgage to pay off my current mortgage?
Yes. Many homeowners use reverse mortgage proceeds to eliminate their existing mortgage payment entirely.

This communication is for informational purposes only, this is not a commitment to lend. All loans are subject to buyer and property qualification. All programs, rates and fees are subject to change or cancellation at any time and without notice. Contact Preferred Rate's Brentwood Team to learn more about mortgage products and your eligibility.

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