Breaking Down The Reverse Mortgage


  • Retirees or those approaching retirement, may be thinking about how to make the most of the years ahead without financial stress. A reverse mortgage loan can be a valuable retirement tool for your customers, plain and simple: They’re designed to help retirees. Due to inflation, market fluctuations and the growing cost of living, many retirees are concerned about outliving their retirement savings. But with a reverse mortgage, borrowers can leverage home equity as needed.
  • The reverse mortgage involves a meticulous process. Lenders are required to perform a thorough financial assessment on each application, ensuring borrowers have the means to meet the ongoing loan obligations. And as part of the loan process, prospects must also meet with an independent, FHA-approved counselor to objectively ensure they understand the reverse mortgage process, what it entails and the terms of the loan.
  • There are borrower protections in place. A Home Equity Conversion Mortgage (HECM is an FHA-insured non-recourse loan, so borrowers will never owe more than the home is worth when the loan is repaid.
  • There is no interference with Social Security. While regular Social Security or Medicare are generally not affected by reverse mortgages, needs-based benefits (such as Supplemental Security Income or Medicaid) may be impacted. You’ll want to consult a financial professional or government benefits specialist about your specific situation. You can also visit
  • You can use the reverse mortgage strategically and be a savvy homeowner. Think of it this way: There are different types of loans for different situations and stages of life — for example, student loans and first-time home buyer loans — and this is a loan designed specifically for older homeowners to give them more financial flexibility.

Can a reverse mortgage benefit you in any of these ways? Contact Eva Cutler, Covenant Reverse Mortgage today to find out how you can take advantage of the reverse mortgage options.