Use your home to fund your retirement dreams
A Reverse Mortgage can provide homeowners ages 62 and older the financial flexibility to access home equity without requiring monthly mortgage payments (borrower still responsible for taxes and insurance).
A Reverse Mortgage is a loan, not a government benefit, and must be repaid
What is a Reverse Mortgage?
A Reverse Mortgage is a loan designed for homeowners age 62 and older that allows you to convert a portion of your home's equity into cash without having to sell your home. Instead of making monthly mortgage payments to a lender, you receive funds that can be taken as a lump sum, monthly payments, a line of credit, or a combination of these options, depending on the program you choose. You continue to own your home and can live in it as your primary residence while remaining responsible for property taxes, homeowners insurance, maintenance, and any applicable HOA dues. The loan is typically repaid when the home is sold, you move out permanently, or the last eligible borrower no longer lives in the home. A Reverse Mortgage can provide greater financial flexibility in retirement, whether you're looking to supplement your income, eliminate an existing mortgage payment, prepare for unexpected expenses, or simply have easier access to the equity you've built over the years.
Did you know 88% of older homeowners want to age in place?*
A Reverse Mortgage can help homeowners age in place by giving them access to the fund they need to hire at-home care, make home accessibility renovations, and more. Watch the video to learn more.
*Source: University of Michigan Institute for Healthcare Policy & Innovation
Highlights
Why homeowners choose Reverse Mortgages
Reverse mortgage proceeds are loan advances, not income, and are generally not taxable; Bank CMG does not provide tax advice. Tax treatment depends on your individual circumstances and current law. Consult your tax advisor.
Tap into your equity in a way that meets your needs
Rather than forcing you into a line of credit or a lump sum of cash, a Reverse Mortgage allows you the flexibility to receive money in whichever form you want.
- Lump sum
- Monthly deposits
- Line of credit
- Combination of options
Ways to use a Reverse Mortgage
Many homeowners use the proceeds for:
- Retirement income
- Healthcare expenses
- Home renovations
- Paying off an existing mortgage
- Creating an emergency fund
- Helping family members
HECM vs Conventional vs HELOC
Which is right for you?
| Feature | HECM Reverse Mortgage | Conventional Mortgage | HELOC |
|---|---|---|---|
| Monthly Payment | None* | Required for 15-30 years | Required (interest-only during draw period, then principal + interest) |
| Primary Goal | Improve cash flow and access home equity | Buy or refinance a home while building equity | Access equity as needed for ongoing expenses |
| How You Receive Funds | Lump sum, line of credit, monthly payments, or a combination | N/A | Revolving line of credit you draw from as needed |
| Minimum Age | 62+ | No minimum age | No minimum age |
| Credit | No minimum credit score | Credit qualification required | Credit qualification required |
| Available Credit | Unused line of credit can grow over time (if a line of credit is selected) | N/A | Credit limit does not grow automatically |
| Repayment | Typically repaid when you sell the home, move out permanently, or the last eligible borrower passes away | Paid monthly until loan is satisfied | Repaid monthly over the loan term |
| Best For | Homeowners 62+ who want to improve retirement cash flow, eliminate mortgage payments, or access home equity without selling their home | Home buyers or homeowners financing a home purchase or refinance | Homeowners who need flexible access to funds and are comfortable making monthly payments |
What to consider before getting a Reverse Mortgage
A Reverse Mortgage isn't the right solution for everyone.
- It will affect your available home equity. As you use your available funds and interest accrues, the amount of equity remaining in your home may decline.
- It's designed for long-term homeowners. If you plan to move within the next few years, a reverse mortgage may not provide enough value to outweigh the upfront costs.
- There are upfront closing costs. Like most mortgages, reverse mortgages include closing costs and fees, which are often financed into the loan.
- Your heirs may inherit less equity. Because the loan balance grows over time, there may be less equity remaining for your estate.
- Interest accrues over time. Since you're not making monthly mortgage payments, interest is generally added to the loan balance.
- It's not the right fit for every financial goal. If you're primarily looking for short-term financing or plan to sell your home soon, another option like a HELOC or traditional mortgage may better meet your needs.
Answers to your Reverse Mortgage questions and misconceptions
Many homeowners have heard stories about Reverse Mortgages that simply aren't true today. Here are some of the questions we hear most often.
Will the bank own my house?
No. You remain the owner of your home, just like with a traditional mortgage. We place a lien on the property, but ownership stays with you.
Will my kids inherit debt?
No. Reverse mortgages are non-recourse loans. Your heirs will never owe more than the value of the home, even if the loan balance is higher.
Can I still sell my home?
Absolutely. You can sell your home whenever you choose. The reverse mortgage is simply repaid from the sale proceeds.
Will I lose my home?
No, as long as you continue to:
- Live in the home as your primary residence
- Pay property taxes
- Maintain homeowners insurance
- Keep the home in good condition
- Meet the terms of the loan
What happens when I pass?
Your heirs can choose to:
- Sell the home
- Pay off the loan and keep the home
- Walk away if they choose
- They are never personally responsible for paying any balance beyond the home's value.
How can I use the money?
Absolutely. You can use the cash to:
- Pay bills and everyday expenses
- Help cover the cost of healthcare or home care
- Make home repairs and upgrades
- Travel
- Help out family members
General requirements for Reverse Mortgages
- Must live in home as primary residence
- Property must be a single family, 2-4 unit home, PUD, townhome, or condo
- Pay property taxes
- Maintain homeowners insurance
- Maintain the home
- have sufficient equity
- Have acceptable credit and income
- Meet the terms of the loan
How it works
1. Schedule a consultation
Meet with one of our reverse mortgage specialists to discuss your goals, answer your questions, and determine whether a reverse mortgage is the right fit for your retirement plans.
2. Review your eligibility
We'll review your age, home value, existing mortgage (if applicable), and financial information to confirm you qualify and estimate how much equity may be available.
3. Complete HUD counseling
For federally insured HECM reverse mortgages, you'll complete a required counseling session with an independent HUD-approved counselor. This ensures you fully understand how the loan works and all of your available options.
4. Appraise your home and finalize loan
A home appraisal helps determine your home's current value. Once your loan is approved, you'll review and sign your closing documents.
5. Receive your funds
After closing, you can receive your proceeds as a lump sum, monthly payments, a line of credit, or a combination of these options, depending on the loan you choose.
Frequently Asked Questions
We’re here to help! Find answers to your everyday banking questions.
A reverse mortgage is a loan available to eligible homeowners age 62 and older that allows them to convert a portion of their home equity into tax-free loan proceeds. Unlike a traditional mortgage, you aren't required to make monthly mortgage payments as long as you continue to meet the loan requirements, including living in the home as your primary residence and paying property taxes, homeowners insurance, and maintenance costs.
A reverse mortgage allows you to borrow against your home's equity while continuing to live in and own your home. You can receive your funds as a lump sum, monthly payments, a line of credit, or a combination of these options. The loan is typically repaid when the home is sold, you move out permanently, or the last eligible borrower passes away.
Generally, to qualify you must:
- Be age 62 or older
- Live in the home as your primary residence
- Have sufficient home equity
- Complete HUD-approved counseling
- Meet the financial eligibility requirements established by HUD
Reverse mortgage proceeds are generally considered loan proceeds and are not taxable income.¹
Yes. Reverse mortgages do not have prepayment penalties, so you can repay the loan at any time if your financial situation changes.
Reverse mortgages include many of the same costs as other mortgage loans, such as closing costs and mortgage insurance premiums for FHA-insured HECMs. Many of these costs can be financed as part of the loan instead of being paid out of pocket.
No. FHA-insured Home Equity Conversion Mortgages (HECMs) are non-recourse loans, meaning neither you nor your heirs will owe more than the home's value when it is sold, provided the loan terms have been met.
Yes. Your heirs have several options when the loan becomes due. They may choose to sell the home, refinance the reverse mortgage balance to keep the home, or pay off the loan using other available funds, subject to loan requirements.
Depending on the program, you may choose to receive your funds as:
- A lump sum
- Monthly payments
- A line of credit
- A combination of these options