What Is a Reverse Mortgage?
At Crestico, we’re more than just a mortgage brokerage—we’re your trusted partner in turning home equity into meaningful financial flexibility.
Check Eligibility
Payment Option
Get Approved
Close the Loan
Repayment & Loan Terms
A reverse mortgage with Crestico is a type of first mortgage loan that can help you pay off an existing mortgage, access cash, or establish a line of credit for future needs. Unlike a traditional mortgage, you won’t need to make any principal or interest payments while living in your home and staying current on property charges.
The interest and potential mortgage insurance that accumulate monthly are deferred and will be repaid when you sell the home, move out, or pass away. Let Crestico guide you through this flexible financial solution.
Uses of a Reverse Mortgage
- Paying off an existing mortgage
- Funding home repairs and improvements
- Settling existing debts (such as credit cards or car loans)
- Covering medical expenses or in-home healthcare costs
- Helping with property taxes and insurance payments
- Planning for an estate to leave money to heirs
- Extending retirement savings by tapping into home equity during market downturns
- Purchasing a new home
Program Eligibility Requirements
Age: You must be at least 62 years old at the time of closing to qualify for the FHA HECM product. If you are 62 but your spouse is under 62, it’s important to discuss this with us to understand the potential implications if your spouse outlives you. For proprietary products, minimum age requirements can vary by state law and have been as low as 55 in the past.
Residence: You must own a primary residence, which can be a single-family home, an FHA-approved condominium, townhouse, manufactured home, or a property with up to four units. Mobile homes and condominiums have specific qualification rules.
Equity: You must have equity in your property. While there is no fixed percentage of equity required, a general guideline is having at least 50% equity in your home. The older you are, the more you can borrow, and interest rates at the time of the loan also influence how much you are eligible to borrow.
Frequently Asked Questions (FAQs)
Will I still own my home?
With a reverse mortgage, you remain the owner of your home — not the lender. As long as you meet the loan’s requirements, you have the right to stay in your home. Similar to a traditional mortgage, the lender places a lien on the property solely to secure repayment of the loan.
Will my family be responsible for the loan after I’m gone?
No, your heirs won’t be stuck with the debt. A reverse mortgage is a non-recourse loan, which means the lender can only recover the amount owed through the sale of the home. They cannot claim any other assets from you or your estate. If the loan balance ends up being more than the value of the home, your heirs will not be responsible for paying the difference — the lender absorbs that loss.
What are the borrower qualifications for a reverse mortgage?
To qualify for a reverse mortgage, you generally need to be at least 62 years old and own your home. However, in many states, Finance of America offers exclusive reverse mortgage options for homeowners as young as 55. Along with meeting the age requirement, you’ll typically need around 50% equity in your home. A financial assessment is also required to ensure you’re able to meet the loan’s ongoing obligations.
What happens at the end of a reverse mortgage?
What protections do I have?
One of the biggest misconceptions about reverse mortgages is that they’re risky. In reality, these loans are heavily regulated by the U.S. government and come with strong consumer protections, making them safer than ever. Key safeguards include maximum claim limits, mandatory financial assessments to ensure borrowers can manage the loan, and required counseling with an independent, HUD-approved advisor to help borrowers make an informed choice.
What fees are associated with a reverse mortgage?
In addition to the required counseling fees and FHA insurance (for certain loans), the fees for a reverse mortgage are typically similar to those of a traditional forward mortgage. It’s also important to note that most fees are rolled into the loan balance, so you’ll pay very little upfront.