There’s a saying that’s popular among financial planners: “You can’t take a loan to pay for retirement.” Well, perhaps you can, after all.
Reverse mortgages allow older homeowners to draw down the equity in their homes without having to make a payment. In fact, it works the opposite way: Homeowners get a check from the bank either monthly, in a lump sum or as a line of credit.
The vast majority of reverse mortgages are home-equity conversion mortgages insured by the Federal Housing Administration. To qualify for a HECM, you must be at least age 62, have significant equity in your home and use it as your primary residence.
