A reverse mortgage is a loan available to homeowners 62 years and older that allows them to convert part of their home’s equity into cash. Unlike traditional mortgages, the borrower does not make monthly payments; instead, the loan balance is repaid when the home is sold, the borrower moves out permanently, or passes away.

To be eligible, you must:

• Be at least 62 years old

• Live in the home as your primary residence

• Have significant equity in the property

• Stay current on property taxes, homeowners insurance, and maintenance

• Complete a HUD-approved counseling session before applying

There are three main types:

• HECM (Home Equity Conversion Mortgage): The most common and the only FHA-insured option

• Proprietary Reverse Mortgages: Private loans for higher-value homes

• Single-Purpose Reverse Mortgages: Offered by some state/local agencies for specific uses

MCM Mortgage, LLC can help determine which program best fits your goals.

Borrowers can receive funds in several ways:

• Monthly payments

• A lump sum

• A line of credit (one of the most popular options)

• A combination of the above

You can choose the method that best supports your financial plan.

Yes. You retain full ownership of your home as long as you meet the loan requirements—like paying property taxes, homeowners insurance, HOA dues (if applicable), and maintaining the home.

The loan becomes due when:

• You sell the home

• Move out permanently

• Or pass away

Your heirs can choose to:

• Sell the home to repay the loan

• Refinance the balance and keep the home

• Or hand the property back if the loan exceeds the home’s value (because HECM loans are non-recourse)

The amount you qualify for depends on:

• Your age

• Current interest rates

• The home’s appraised value

• FHA lending limits (for HECM loans)

Generally, older borrowers with higher-value homes qualify for more.

Yes. Borrowers can repay the loan at any time, partially or in full, without prepayment penalties.

Start by speaking with an MCM Mortgage loan specialist. You'll complete a HUD-approved counseling session, then provide basic financial documents and schedule a home appraisal. We guide you through every step to ensure clarity and peace of mind.