Reverse Mortgage
If you’re 62 or older, your home may be one of your biggest financial assets — and a reverse mortgage could help you make the most of it. This unique loan allows homeowners to convert part of their home equity into tax-free cash, all while staying in their home and maintaining ownership.
How a Reverse Mortgage Works
A reverse mortgage is a special type of loan that pays you, rather than the other way around. Instead of making monthly mortgage payments, you receive funds based on your home’s value and equity. You continue to live in your home, and you remain responsible for property taxes, homeowners insurance, and maintenance.
The loan is typically repaid later — most often when you sell your home or no longer live there.
The most common type is the Home Equity Conversion Mortgage (HECM), insured by the Federal Housing Administration (FHA). It’s the only reverse mortgage backed by the U.S. government, designed to protect borrowers and ensure fair terms.
Options for Higher-Value Homes
For homeowners with higher-value properties, there are also non-HECM reverse mortgages, which can offer larger loan amounts — up to $4 million in some cases. In certain states, these may be available starting at age 55.
At Canopy Mortgage, Tricia and her team offer both FHA-insured HECM loans and non-HECM reverse mortgages, helping clients choose the option that best fits their financial goals.
Why Homeowners Are Choosing Reverse Mortgages
According to HUD data, more than 1.36 million Americans have used a reverse mortgage as part of their retirement strategy — and 94% say it gave them greater peace of mind.
Common reasons homeowners choose this option include:
Supplementing retirement income
Paying off existing debt
Covering medical or living expenses
Enjoying more financial flexibility during retirement
Is It Right for You?
A reverse mortgage isn’t the right fit for everyone — but it can be a powerful tool for the right situation. If you’re looking to stay in your home while improving your cash flow, it’s worth exploring with a trusted mortgage professional.
Tricia at Canopy Mortgage offers free, no-pressure consultations to help you understand your options and what this could look like for your specific needs.
Sources:
U.S. Department of Housing and Urban Development — https://www.hud.gov
Consumer Financial Protection Bureau — https://www.consumerfinance.gov
AARP — https://www.aarp.org
U.S. News Real Estate — https://www.usnews.com
