All borrowers must be 62 years or older (some products available down to age 55)

Home must be owner occupied as the primary residence

Must be able to pay taxes, required homeowners insurance, and maintain the property

HECM for Purchase

  • Downsizing and eliminating a monthly mortgage payment
  • Upsizing to buy the “dream home” and not have a monthly payment
  • Relocating closer to family or moving for medical or weather related issues
  • Borrowers may meet HECM requirements even if they do not qualify for traditional financing


  • Eliminating a monthly payment
  • Additional income
  • Getting a line of credit as a “safety net” to draw on when needed
  • Repositioning finances to have more reserves

 * No monthly P&I payments; borrowers are required to pay property taxes, insurance, and maintain the home

  • The reverse mortgage loan amount for a purchase is based on age, the lower amount of the sales price or appraised value, current FHA lending limits and current interest rates.
  • The down payment for a Reverse for Purchase is calculated by using the sales price minus the reverse loan amount.
  • The down payment must be documented and in the account for three months. Seller concessions are not permitted within this program.
  • Single Family Residence
  • Condominiums (must meet FHA guidelines prior to obtain the Reverse Mortgage)
  • PUD – Planned Unit Development
  • Manufactured homes (must meet FHA and Lender guidelines)
  • 1-4 unit properties

There are five primary factors that go into the calculation of a Reverse Mortgage Loan

  1. The appraised value of the property (subject to the FHA limit for home value)
  2. Repairs needed to the home due to FHA guidelines for health and safety standards
  3. Payoff if there are any existing liens on the home
  4. Current applicable interest rate
  5. The age of the youngest borrower

Yes, there is a maximum lending limit on the FHA HECM product.

Repayment of a Reverse is deferred until the home is sold or the last borrower no longer occupies the property as their primary residence.

The Reverse would continue without change to the borrower. The borrower nor their heirs would owe more than the property is worth at the time the loan is due and payable (time of sale)

There are two things to keep in mind:

#1 – There are closing costs on the loan and therefore it was designed to be used for the long haul. So the question to answer is “Is this the home you envision living in as long as you can foresee?” If yes, then this may be a good solution.

#2 – Depending on how much of the available funds you use, what the Real Estate values do over time, and  how long you use the loan (live in the home), you could consume the equity in the home. If the loan allows you to be financially independent and you are aware that this does not create a debt that passes to your heirs to pay (MIP), then this might be a suitable option for you.


Reverse Mortgages have helped thousands of seniors remain in their homes and create a more solid financial foundation. At APRMG we make it as easy as possible for you to obtain a Reverse Mortgage that works for you. We are here for you every step of the way, helping you understand and customize a loan that meets your unique situation. We know this type of decision can at times be overwhelming; we encourage you to seek advice and counsel from those you trust, whether it be family, an attorney, a financial planner, a tax specialist or other trusted professional. The following steps are here to help guide you and give you an idea of what to expect throughout the process of obtaining a reverse mortgage.

In addition, please visit some of these websites with additional information on the Reverse Mortgage Process!