{"id":355766,"date":"2016-04-04T11:01:54","date_gmt":"2016-04-04T16:01:54","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/elder\/elder-care-law\/reverse-mortgages-and-the-elderly.html"},"modified":"2026-07-29T13:33:00","modified_gmt":"2026-07-29T18:33:00","slug":"reverse-mortgages-and-the-elderly","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/elder\/elder-care-law\/reverse-mortgages-and-the-elderly.html","title":{"rendered":"Reverse Mortgages and Older Adults: The Basics"},"content":{"rendered":"\n
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Reverse Mortgages and Older Adults: The Basics<\/h1>\n\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n
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A reverse mortgage lets homeowners age 62 or older borrow against their home equity, but each loan type comes with different rules, costs, and long\u2011term risks. Borrowers must still pay taxes and insurance, understand when the loan becomes due, and be aware of how reverse mortgages can affect benefits like Medicaid.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Reverse mortgages are loans in which a homeowner borrows money against the value of their home. These types of mortgages are only available to homeowners age 62 and older.<\/p>\n

There are three types of reverse mortgage loans. A single-purpose reverse mortgage, a federally insured reverse mortgage, and a proprietary reverse mortgage. Each type of reverse mortgage loan has its own eligibility requirements and risks. It’s important to understand the basics of each to find the right reverse mortgage for you.<\/p>\n

This article explains how reverse mortgages work, the three loan types available to adults 62 and older, and the eligibility rules for each. You’ll also find the risks you should be aware of before using home equity for income.<\/p>\n

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Reverse mortgages can be complex and high in fees. An elder law attorney<\/a> near you can help you evaluate your options and protect your financial interests before committing.<\/p>\n

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Reverse Mortgage Basics Explained<\/h2>\n

A reverse mortgage<\/a> allows a homeowner to use their home equity as collateral. This enables a homeowner to receive money as an annuity, a lump sum, monthly payments, or a line of credit. Usually, an older adult homeowner will use these funds to supplement retirement income or pay for health care expenses or in-home care.<\/p>\n

Typically, the loan comes due after an agreed-upon period or when the borrower dies. The mortgage company bases the amount on the appraised value of the borrower’s home.<\/p>\n

Generally, the borrower must meet all the following criteria:<\/p>\n