Empowering Retirement Planning With Home Equity

Discover why Morningstar and the Financial Planning Association (FPA) choose Finance of America Reverse to educate financial professionals on the strategic uses of housing wealth.
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2 Out of 3 Seniors

Wish to retire and age in place

43% of Homeowners

Would be interested in accessing equity if they knew more

9 Out of 10 Clients

Trust their advisors to offer them home equity options

Cover long-term medical expenses

Buy a home to match needs

Fund legacy and estate plans

Diversify investments

Pay for home renovations

Pay for lifestyle improvements

What’s a Reverse Mortgage?

A reverse mortgage helps older homeowners gain liquidity and improve their financial roadmap with home equity.

Reverse in Action

Improve Cash Flow

Ruby and Harry are eager to obtain cash from their home equity and travel but also love the interest rate of their current mortgage. With HomeSafe Second, they can use their equity to fund their dreams while keeping their current first mortgage in place.


Age: 73 and 73
Home Value: $900,000
Existing Mortgage: $230.000 at 2.75% Interest Rate

Potential HomeSafe Second Loan: $194,000*
Reverse in Action

Long Term Care

Emily does not have a longterm care solution and is looking to purchase life insurance with an LTC rider, but the premium is $9,000/year. As an alternative, Emily decides to put a reverse mortgage line of credit on her home to selffund her needs and avoid a high insurance premium.


Age: 62
Home Value: $600,000
Existing Mortgage: $0

Potential Line of Credit: $202,000
Reverse in Action

Purchasing a Second Home

Linda and Steve are looking to purchase a second home to be closer to family but would prefer not to sell their investments and pay capital gains taxes. Instead, they use a reverse mortgage on their current home to unlock the necessary funds without touching their portfolio.


Age: 64 and 65
Home Value: $1,200,000
Potential Loan Amount: $418,000
Paid Off Mortgage Balance: ($100,000)

Remaining Cash Available: $283,000

Frequently Asked Questions

Yes. The borrower still retains ownership of the home and may sell it at any time with no prepayment penalties. The home is simply secured with a lien similar to a traditional mortgage or home equity line of credit.

There is never a required principal or interest payment during the life of a reverse mortgage loan. Homeowners are still required to pay property-related expenses, including taxes, insurance, and HOA fees.

Generally, the loan balance is due after the last borrower permanently moves from the home or passes away.

The borrower’s heirs may sell the home and keep any remaining equity if they wish, or refinance with a traditional mortgage if they want to retain the property. In the event the loan exceeds the value of the property, the heirs can choose to walk away via foreclosure with no responsibility to the remaining balance.

Yes, reverse mortgages are non-recourse loans, which means the lender can only look to the subject property for satisfaction of the mortgage lien. The borrower and/or heirs are never personally liable for satisfaction of the reverse mortgage.

FAR’s proprietary products can offer borrowers loan amounts up to $4 million.

Yes. The home can be in a trust, revocable or irrevocable, provided the trust meets FHA trust guidelines.

This amount is generally based on the home’s value, prevailing interest rates, and the age of the youngest borrower or eligible non-borrowing spouse.

Reverse mortgages are only available on the borrower’s primary residence, which can be a single-family home or up to a four-unit dwelling.

However, there are no restrictions on the use of reverse mortgage proceeds. As long as borrowers continue to meet the occupancy requirements of the loan, they may use their proceeds as part of a secondary property purchase.

The borrower is responsible for all property-related expenses, including taxes, insurance, and HOA fees.

No. All reverse mortgage proceeds are considered loan proceeds and not subject to income tax.

Borrowers must be at least 62 for an FHA-insured reverse mortgage and 60 (where applicable by state law) for a lender-specific product, including FAR’s proprietary solutions. Younger spouses can remain on the property title but cannot be on the loan.

The terms of the loan remain the same as long as one borrower remains in the home.