The most common federally insured reverse mortgage is the Home Equity Conversion Mortgage, or HECM. The homeowner keeps title, and the loan balance generally grows as funds are advanced and interest and fees accrue.
Reverse mortgages in Virginia
A reverse mortgage is a planning tool, not a slogan.
Eligible older Virginia homeowners may use a reverse mortgage to access part of their home equity, but costs, occupancy, taxes, insurance, heirs, and long-term plans must be understood first.
How does a reverse mortgage work?
A HECM may provide proceeds as a line of credit, monthly advances, a lump sum where permitted, or a combination. Available proceeds depend on age, home value, current rates, existing liens, and program limits.
Traditional monthly principal-and-interest payments are not required, but the borrower must meet loan terms, live in the home as a principal residence, and keep taxes, insurance, and property charges current.
Is counseling required?
HUD-approved counseling is required for a HECM. Counseling provides an independent explanation of costs, alternatives, obligations, and when the loan can become due.
Family members or trusted advisers may be useful in the planning conversation, especially when heirs, caregiving, or a future move are part of the decision.
What alternatives should be compared?
Compare selling or downsizing, a HELOC or home equity loan, a traditional refinance, local assistance, and using other assets. Consider both near-term cash flow and long-term equity.
A reverse mortgage becomes due after a maturity event defined by the loan, commonly when the last eligible borrower permanently leaves the home, sells it, or dies. Non-borrowing spouse protections and heir options depend on the facts and program rules.
Build the real plan
A program is only useful when it fits your numbers.
We will compare the payment, cash, timeline, property, and tradeoffs before deciding what belongs in your plan.
Not sure where to start?