239-910-4980

Get Pre-Approved

FORT MYERS MORTGAGE BROKER

Reverse Mortgages in Southwest Florida

A reverse mortgage lets homeowners 62 and older borrow against their home equity without making monthly mortgage payments. You still own the home and must keep paying property taxes, homeowners insurance and upkeep. Ryan Meyer helps you understand how it works and whether it fits your plans.

  • For homeowners 62 and older
  • Counseling with a HUD-approved counselor is required

Talk With Ryan

Let’s talk about your plans.

  • This field is for validation purposes and should be left unchanged.

How a Reverse Mortgage Works

The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). Instead of making monthly payments to a lender, you receive funds based on factors that include your age, current interest rates and your home’s value.

Interest and fees are added to the loan balance, so the balance grows over time and your equity typically shrinks. The loan generally becomes due when the last borrower no longer lives in the home as a principal residence, the home is sold, or the loan terms aren’t met.

Ryan Meyer and E Zip Mortgage are not affiliated with HUD, FHA or any government agency.

Who Is Eligible for a HECM

  • You’re 62 or older
  • The home is your principal residence
  • You own the home outright or have a mortgage balance low enough to pay off at closing
  • You complete counseling with a HUD-approved counselor
  • You have the resources to keep paying property taxes, insurance and maintenance
  • You aren’t delinquent on federal debt, though loan proceeds can be used to pay it off
  • The home meets the program’s property standards

Source: Consumer Financial Protection Bureau. A financial assessment and other program requirements also apply.

Your Ongoing Obligations

You keep title to your home. To keep the loan in good standing, you must live in the home as your principal residence, pay property taxes, homeowners insurance and other property charges, and maintain the property. If you don’t meet these obligations, the loan can become due and you could lose your home.

Costs to Understand

A HECM has costs, including FHA mortgage insurance premiums, an origination fee, closing costs and interest that adds to your balance over time. Ryan explains the costs before you decide, and your HUD-approved counselor will review them with you too.

What Happens When the Loan Comes Due

A reverse mortgage is typically repaid by selling the home or refinancing. With a HECM, heirs can keep the home by paying off the loan, sell it, or turn it over to the lender. If the balance is more than the home’s value, a HECM is generally satisfied by selling the home for at least 95% of its appraised value.

Source: Consumer Financial Protection Bureau.

Buying a Home With a Reverse Mortgage

A HECM can also be used to buy a new principal residence. You pay the difference between the loan proceeds and the purchase price plus closing costs from your own funds.

Source: U.S. Department of Housing and Urban Development.

Questions to Discuss Before You Decide

  • What happens if a spouse is younger than 62 or not on the loan
  • How your heirs would handle the home
  • How the costs compare with alternatives like a HELOC, refinancing or downsizing

Related Services

Frequently Asked Questions

Frequently Asked Questions

For a HECM, you must be 62 or older.

Yes. You keep title, and you must keep paying property taxes, homeowners insurance and other property charges and maintain the home.

Monthly mortgage payments aren’t required, though you can choose to make payments. If you don’t, interest and fees are added to the balance and it grows over time.

Yes. You must complete counseling with a HUD-approved counselor before you can get a HECM.

The loan typically becomes due. Heirs can pay it off and keep the home, sell the home, or turn it over to the lender. Rules for a spouse depend on their status on the loan, so it’s best to review this early.

Yes, if you don’t meet the loan terms, such as living in the home as your principal residence, paying property taxes and insurance, and maintaining the property. Ryan reviews these obligations with you before you decide.

Let’s Talk About Your Next Move

Exploring a Reverse Mortgage?

Connect with Ryan Meyer to understand how it works and your next steps.

Talk With Ryan

Prefer to call? 239-910-4980