Loan Programs → Reverse Mortgages

Understand Your Home-Equity Options for Retirement and Later Life

A reverse mortgage allows an eligible older homeowner to convert part of home equity into loan proceeds without scheduled monthly principal-and-interest payments while the loan remains in good standing. The borrower retains title and must continue meeting property, occupancy, tax, insurance, maintenance, and loan obligations.

FHA-insured Home Equity Conversion Mortgage options for eligible homeowners age 62 or older.
HECM for Purchase, refinance, fixed-rate, adjustable-rate, line-of-credit, tenure, term, and combination options.
Proprietary or jumbo reverse mortgages for eligible borrowers and higher-value properties, subject to private-lender requirements.

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Program Overview

The Home Equity Conversion Mortgage, or HECM, is the reverse mortgage insured by the Federal Housing Administration. At least one eligible borrower generally must be age 62 or older, occupy an eligible property as a principal residence, complete counseling with a HUD-approved agency, and satisfy property, title, equity, financial-assessment, and lender requirements.

A reverse mortgage is a loan, not a government benefit or sale of the home. Interest, mortgage insurance when applicable, servicing charges if applicable, and financed closing costs are added to the loan balance. The balance generally grows over time as proceeds are advanced and interest accrues.

The loan generally becomes due after a maturity event, such as sale of the property, permanent move, death of the last eligible borrower, failure to occupy the property as required, or failure to meet loan obligations. Heirs should understand the available payoff, sale, deed, and timeline options under the loan and applicable law.

Loan Options We Offer

FHA Home Equity Conversion Mortgage - HECM

The HECM is the FHA-insured reverse mortgage for eligible homeowners age 62 or older. Available proceeds depend on the age of the youngest eligible borrower or non-borrowing spouse where applicable, interest rates, property value up to the applicable limit, existing liens, costs, and financial assessment.

HECM for Purchase

HECM for Purchase allows an eligible borrower to buy a new principal residence using reverse-mortgage proceeds combined with the borrower's required funds at closing. The borrower must occupy the home, complete counseling, satisfy financial assessment, and meet property and lender requirements.

HECM Refinance

An eligible homeowner may refinance a traditional mortgage or another eligible lien into a HECM. Existing liens and required obligations are paid from available proceeds before remaining funds can be accessed.

HECM-to-HECM Refinance

An existing HECM borrower may qualify to refinance into a new HECM when current seasoning, benefit, counseling, property, equity, financial assessment, and lender requirements are satisfied. A refinance should provide a meaningful benefit after costs.

Fixed-Rate HECM

A fixed-rate HECM keeps the note rate fixed. Proceeds are generally provided through the permitted lump-sum structure at closing, subject to initial disbursement limits, mandatory obligations, available principal limit, and program rules.

Adjustable-Rate HECM

An adjustable-rate HECM may provide greater flexibility in how proceeds are received. The rate can adjust according to the index, margin, and caps in the loan documents, affecting how quickly the loan balance grows.

HECM Line of Credit

An adjustable-rate HECM may provide a line of credit from which the borrower can draw available funds over time. The unused available portion may have a growth feature under the loan terms, but it is not an interest-bearing deposit account or investment.

HECM Tenure Payment Plan

A tenure plan provides scheduled monthly advances while at least one eligible borrower occupies the home as a principal residence, the loan remains in good standing, and available proceeds and program conditions support the plan.

HECM Term Payment Plan

A term plan provides scheduled monthly advances for a borrower-selected period. The amount depends on available proceeds and the selected term.

Modified Tenure Payment Plan

A modified tenure plan combines scheduled monthly advances with an available line of credit. Allocating more funds to the line generally reduces the scheduled monthly amount and vice versa.

Modified Term Payment Plan

A modified term plan combines scheduled monthly advances for a selected period with an available line of credit. The borrower chooses how to allocate available proceeds, subject to program limits.

HECM Lump-Sum Proceeds

A permitted lump-sum disbursement may be used to pay mandatory obligations and provide available proceeds at closing, subject to the fixed- or adjustable-rate structure and current initial-disbursement limitations.

Proprietary or Jumbo Reverse Mortgage

A private reverse mortgage may be available for eligible higher-value properties or borrowers whose needs fall outside standard HECM parameters. Minimum age, property value, proceeds, rates, fees, payment options, counseling, state availability, and protections vary by lender.

Reverse Mortgage for an Eligible Condominium

A HECM or proprietary reverse mortgage may be available for an eligible condominium unit. FHA project approval or eligible single-unit approval may be required for HECM, while private lenders use their own project standards.

Reverse Mortgage for an Eligible Manufactured Home

A HECM may be available for an eligible manufactured home that meets FHA real-property, title, foundation, installation, age, appraisal, occupancy, and property requirements. Private reverse lenders establish separate standards.

Who This Program May Fit

An eligible homeowner age 62 or older considering access to home equity without scheduled monthly principal-and-interest payments.
An eligible buyer using HECM for Purchase to acquire a new principal residence.
A homeowner seeking to pay off an existing mortgage and reduce required monthly debt payments.
A borrower seeking an available line of credit, scheduled monthly advances, or another permitted proceeds plan.
An owner of a higher-value property considering a proprietary reverse mortgage.

What Borrowers Should Prepare

Government-issued identification, Social Security or taxpayer information, age documentation, and residence history.
Current mortgage, HELOC, lien, judgment, tax, insurance, association, and property-charge information.
Income, bank, retirement, benefit, asset, debt, credit, and expense documentation for financial assessment.
Homeowners and flood insurance, property-tax records, association information, and documentation for required repairs.
HUD-approved counseling certificate for HECM and any counseling required by state law or a proprietary lender.

How the Mortgage Process Works

1
Initial consultation: We discuss the borrower's goals, property, occupancy, timing, available funds, income, assets, credit profile, and existing mortgage obligations.
2
Independent counseling: The borrower completes counseling with an approved agency before the lender can complete the HECM process.
3
Application and documents: The borrower completes a mortgage application and provides documents required for the selected program and lender.
4
Financial assessment and appraisal: The lender evaluates ongoing property-charge capacity and orders the required property appraisal and reviews.
5
Closing and rescission where applicable: The borrower reviews the note, security instrument, costs, proceeds plan, obligations, and applicable cancellation rights.

Important Considerations

The loan balance generally grows as interest, mortgage insurance when applicable, fees, and advances accrue.
Available proceeds are affected by age, interest rates, property value, existing liens, costs, and program limits.
The borrower retains title but must meet occupancy, tax, insurance, maintenance, and other obligations.
The loan generally becomes due after a maturity event.
A non-borrowing spouse may have certain protections only when all applicable requirements are satisfied; those protections do not give the spouse access to loan proceeds.
A reverse mortgage can reduce the equity remaining for the borrower or heirs.
Borrowers should compare alternatives, involve trusted family or advisers when appropriate, and review estate and tax considerations independently.

Frequently Asked Questions

Do I give the lender ownership of my home?

No. The borrower retains title, subject to the reverse-mortgage lien and all loan obligations. The lender does not receive ownership merely because a reverse mortgage is completed.

Do I have to make a monthly mortgage payment?

A reverse mortgage generally does not require scheduled monthly principal-and-interest payments while the loan remains in good standing. The borrower must still pay property taxes, insurance, association charges, maintenance, and other required property expenses.

When does the reverse mortgage become due?

The loan generally becomes due after a maturity event such as sale, permanent move, death of the last eligible borrower, failure to occupy the home as required, or failure to meet taxes, insurance, maintenance, or other loan obligations.

Can heirs keep the home?

Heirs may have options to repay the amount due, refinance, sell the home, or follow other available servicing procedures. They should contact the servicer promptly after a maturity event and obtain legal advice when needed.

Is counseling required?

HUD-approved counseling is required for a HECM. Counseling helps the borrower understand costs, obligations, alternatives, payment plans, and consequences. Proprietary and state requirements may differ.

Is a reverse mortgage tax-free income?

Reverse-mortgage proceeds are loan advances, not wages. Tax, public-benefit, estate, and financial consequences depend on individual circumstances. Consult qualified tax, legal, and benefits advisers.

Does viewing this page mean I am approved?

No. Website information is not an approval, preapproval, commitment to lend, or guarantee of terms. A lender must review a completed application and all required documentation.

Are all of these options available in every state?

No. Availability depends on Northgate Mortgage licensing, participating-lender guidelines, property location, loan purpose, occupancy, and current investor requirements.

What determines my rate and closing costs?

Pricing may depend on market conditions, loan program, credit profile, loan amount, property type, occupancy, loan-to-value ratio, documentation method, lock period, points, lender credits, and other transaction details.

What is the first step?

Speak with a Northgate Mortgage loan specialist to review the goal and complete an application when ready. Qualification depends on the complete borrower, property, transaction, and lender review.

Review the Proceeds, Costs, Obligations, and Alternatives

Northgate Mortgage can help eligible homeowners understand HECM, HECM for Purchase, fixed, adjustable, line-of-credit, monthly-advance, refinance, and proprietary reverse options.

Call (888) 433-1448 Email Us Get Pre-Approved

Northgate Mortgage LLC is a mortgage broker and is not making a commitment to lend. All loan programs are subject to borrower and property eligibility, credit review, income and asset verification, appraisal, title review, underwriting approval, investor requirements, occupancy requirements, geographic restrictions, and applicable state licensing. Program availability, guidelines, rates, annual percentage rates, fees, loan limits, and terms may change without notice. Not all applicants will qualify, and not all programs are available in every state. This information is for educational and advertising purposes only and is not legal, tax, investment, or financial-planning advice. Equal Housing Opportunity.

A reverse mortgage is a loan secured by the home. The loan balance generally increases over time. The borrower retains title and must occupy the home as required, pay property taxes and insurance, maintain the property, and comply with all loan terms.

HECM borrowers must complete counseling with a HUD-approved housing-counseling agency. Northgate Mortgage LLC is not HUD, FHA, or a government agency. Proprietary reverse programs are not FHA-insured.

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