How do reverse mortgages stack up against other financial options?
While traditional refinancing and home equity loans require steady income and monthly payments, a reverse mortgage offers a flexible alternative for homeowners 62 and older. It provides access to home equity that can supplement retirement income, cover unexpected expenses, or eliminate existing mortgage payments — all while you continue living in your home.
How Do Reverse Mortgages Compare to Other Financial Solutions?
A reverse mortgage allows homeowners aged 62 and older to access the equity in their homes without selling or making monthly mortgage payments. It’s a flexible, federally insured option that can help enhance financial security and independence in retirement.
Here’s how a reverse mortgage compares to other options:
| Feature | Reverse Mortgage | HELOC | 15/30-Year Fixed Mortgage |
|---|---|---|---|
| Monthly mortgage payments | Optional | Required | Required |
| You still own your home | Yes | Yes | Yes |
| Unused line of credit grows regardless of equity* | Yes | No | N/A |
| Non-recourse loan | Yes | No** | No** |
*Available only for HECM reverse mortgage loans with the line of credit option selected by the borrower.
**Except where prohibited by state law.
Program Highlights
Program Highlights
No required monthly mortgage payments
Borrower retains full ownership of the home
Flexible disbursement options (lump sum, monthly, or line of credit)
Tax-free proceeds for any purpose
FHA-insured programs available
Quick Requirements
Borrower must be 62 years of age or older
Home must be a primary residence
Eligible property types: single-family, FHA-approved condos, or select multi-unit homes
Borrower must maintain property taxes, insurance, and home maintenance
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