Use your home equity to buy a new home or eliminate mortgage payments with a reverse mortgage. Explore purchase and refinance options tailored to your retirement goals.

Reverse Mortgage
A reverse mortgage is a unique type of home loan designed for homeowners aged 62 or older that allows you to convert part of your home’s equity into tax-free funds—with no monthly mortgage payments required. While many people associate reverse mortgages with tapping equity from a home they already own, did you know you can also use a reverse mortgage to purchase a new home? Whether you’re downsizing, relocating, or buying your forever retirement home, the JD.Mortgage team can help you explore how a reverse mortgage can work for both refinance and purchase scenarios.
Click here to request your personalized reverse mortgage consultation.
What Is a Reverse Mortgage?
Reverse mortgages are FHA-insured loans under the Home Equity Conversion Mortgage (HECM) program. These loans are designed to help older homeowners unlock equity while continuing to live in their home. Unlike traditional mortgages, where you make monthly payments to a lender, a reverse mortgage pays you. Funds can be received as a lump sum, monthly income, line of credit, or any combination of the three.
Importantly, these funds are not considered taxable income, and you remain the owner of your home. The loan becomes due only when you move out permanently, sell the home, or pass away. If your heirs choose not to keep the home, it can be sold, and any remaining equity after the loan is repaid will go to your estate.
Find out how much equity you could access with a reverse mortgage.
Reverse Mortgage for Home Purchase: How It Works
Many seniors are surprised to learn they can use a reverse mortgage to purchase a home through the HECM for Purchase (H4P) program. This option allows you to buy a new primary residence without making monthly mortgage payments. Here’s how it works:
- You contribute a percentage of the purchase price as a down payment (usually 45–60%, depending on age and rates)
- The reverse mortgage funds cover the remaining balance
- You move into your new home with no monthly mortgage payments
This is an excellent option for those looking to relocate closer to family, move into a more manageable home, or shift into a single-level property without tapping retirement accounts or taking on new monthly debt.
Explore how to purchase your next home using a reverse mortgage.
Reverse Mortgage Refinance: Access Cash Without Monthly Payments
If you already own your home and want to turn your equity into available funds, a reverse mortgage refinance may be the right path. The loan pays off any existing mortgage balance (if applicable) and allows you to receive the remaining equity as cash, a line of credit, or steady income. Since no monthly payments are required, this can drastically reduce monthly obligations for retirees on fixed incomes.
You can use the proceeds however you choose—whether that’s covering medical expenses, eliminating debt, traveling, or funding lifestyle needs in retirement. The home remains in your name, and you’re only responsible for maintaining property taxes, homeowner’s insurance, and upkeep.
Request your reverse mortgage refinance review today.
Eligibility Requirements
To qualify for a reverse mortgage, you must meet the following FHA and HUD criteria:
- Be at least 62 years old (only one borrower must meet this age requirement)
- Live in the property as your primary residence
- Own the home outright or have a low existing mortgage balance
- Attend a HUD-approved reverse mortgage counseling session
- Demonstrate financial ability to pay property taxes, insurance, and maintenance
Check your eligibility and down payment amount for purchase today.
Types of Reverse Mortgage Payouts
You can structure your loan to suit your needs:
- Lump Sum: Receive all funds at closing (often used for large expenses or paying off debts)
- Monthly Payments: Receive income each month (great for supplementing retirement)
- Line of Credit: Access funds as needed, with growth potential over time
- Combination: Blend any of the above to match your financial strategy
Let us help you build the ideal reverse mortgage plan.
What Happens When the Loan Is Due?
The reverse mortgage loan becomes due when:
- All borrowers pass away
- The home is sold
- The home is no longer your primary residence
At that point, the loan is typically repaid by selling the home or refinancing it. If your heirs wish to keep the home, they may do so by paying off the lesser of the loan balance or 95% of the home’s appraised value. The loan is insured by FHA, meaning your heirs won’t owe more than the home is worth. HUD outlines this process in their official guide to inheriting a HECM loan.
Learn how to plan ahead for your estate or legacy.
Reverse Mortgage Use Cases
Clients use reverse mortgages in creative and responsible ways:
- Buy a new home without monthly mortgage payments
- Cover healthcare costs or long-term care expenses
- Eliminate monthly debt obligations
- Preserve retirement savings and increase cash flow
- Help adult children financially or fund grandchildren’s education
Let’s talk through your goals and see what’s possible.
Common Myths & Facts
There are a lot of myths about reverse mortgages. Here’s the truth:
- Myth: You lose ownership of your home
Fact: You remain on title and keep ownership - Myth: Your heirs will be burdened with debt
Fact: Reverse mortgages are non-recourse; heirs are not liable for shortfalls - Myth: You can’t use a reverse mortgage to buy a home
Fact: HECM for Purchase lets you do exactly that
Clear up your questions with a free consultation.
Why Work with the JD.Mortgage Team?
We understand that a reverse mortgage isn’t a one-size-fits-all solution. That’s why we take the time to understand your needs, your legacy goals, and your lifestyle. Whether you’re buying your final dream home or seeking to relieve financial stress in retirement, our team provides guidance, education, and no-pressure options to empower you to make informed decisions.
We serve clients across 49 states and offer specialized support for both reverse purchase and refinance transactions, ensuring full compliance with FHA and HUD guidelines every step of the way.
Connect with us to begin your reverse mortgage journey.
Other Loan Programs to Explore
If a reverse mortgage isn’t the right fit, we offer a full suite of mortgage solutions:
- VA Loans
- FHA Loans
- USDA Loans
- Down Payment Assistance
- Investment Property Loans
- Non-QM (DSCR, Bank Statement, ITIN)
- HELOCs
- Second Mortgages
- Construction Loans
- View All Loan Options
We’re here to help you make the most informed and confident choice for your future.
Why a Reverse Mortgage?
A reverse mortgage pays off your existing mortgage, should you have one, by allowing you access to the home equity you’ve worked so hard to build. Any money left after paying off your existing mortgage is available to use as you see fit.
- Full or Partial Lump Sum
- Line of Credit
- Monthly Payments
- Combination of Any of These
You have the option to change your disbursement method at any time.