Welcome to iReverse.com

Chances are you have a lot of questions about reverse mortgages,
so think of this website as a helpful resource

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What is a reverse mortgage?

Also known as a Home Equity Conversion Mortgage (HECM)

A reverse mortgage, or Home Equity Conversion Mortgage (HECM), is a type of mortgage that allows you convert the equity in your home into tax-free cash as a lump sum, line of credit, tenure/term payment, or a combination without the obligation of having a monthly mortgage payment. This means instead of making a monthly mortgage payment, the interest is deferred to be repaid at a later date, such as when the last borrower passes away or you decide to sell the home. You would still be required to continue paying the property tax, homeowners insurance, and other property charges. You also must occupy the home as your primary residence and maintain the home to meet HUD/FHA health and safety requirements.

Common Myths and Misconceptions

If I do a reverse mortgage, I no longer own my home.

False. This is probably the most common myth we hear about from prospective clients’ that inquire about a reverse mortgage. Your name will ALWAYS remain on the title of the home. You still retain ownership of your home. You can sell your home or pay off the reverse mortgage at any time with no prepayment penalty. The Lender is NOT the owner of the home. YOU STILL ARE THE OWNER and always will be the owner of your home with a Reverse Mortgage.

If I do the reverse mortgage the government, bank, or lender takes my house.

Just like the above, this is not true. Again, you retain title of the home. You are not giving your home away to another entity when you do the reverse mortgage. However, it is true the government, bank, or lender may take possession of the home if you are in default of the reverse mortgage. A default may occur if you do not make timely payments for property taxes and homeowner’s insurance, you no longer occupy the property as your primary residence, or you do not maintain the home and meet HUD/FHA health and safety requirements. Generally, you have up to a year to cure the default.

If I do the reverse mortgage, my family is not able to inherit the house.

This is false. You may absolutely pass the home to your heirs. In fact, we close many HECM’s with a Trust on title. You may designate whoever you like to inherit your home! The heirs take ownership of your home once the last remaining borrower passes away.