What is a Reverse Mortgage Program?

A reverse mortgage program is basically a loan open for seniors aged 62 and older which allows their home equity to be converted to cash without the monthly dues.  If you want to calculate how much your reverse mortgage loan would be, there are many reverse mortgage calculators online that you could use. But perhaps you would like to know more about what a reverse mortgage loan is, don’t worry this article is here for you to understand what a reverse mortgage loan is.

After having a reverse mortgage, borrower must continue to pay for property taxes and insurance. This type of loan does not become due as long as the borrower lives in the home as your primary residence and continue to meet all the loan obligations. Basically it’s like putting your house as collateral but with a few major differences.

These types of loan are typically used to pay off home renovations, medical expenses or daily living expenses. As seniors, with little to no income, money can sometimes be a big problem. So others would resort to this type of loan.

The loan does not generally need to be paid until 6 months after the last surviving homeowner moves out of the property or dies. During that time, the estate sells the property to repay the balance of the reverse mortgage then the heirs receive the remaining balance of the equity.


The FHA requires that the youngest borrower on the title should be 62 years of age or older. Borrowers must also meet financial criteria set by the HUD before proceeding with the loan. If you want to get an idea on how to calculate how much you can loan with reverse mortgage, there are many different variations of a  reverse mortgage calculator available online that would give you more or less an overview of how much you can get if you so choose to get a reverse mortgage loan.


When the reverse mortgage loan becomes due, the borrower’s next of kin/heirs can either choose to repay the reverse mortgage loan and still keep the property or sell the home to repay the loan. If the home sells for more than the balance of the mortgage loan, the excess funds are then handed to the heirs. The Online reverse mortgage calculator will help you get an idea of how much you can loan in this kind of program.

However if the home sells for less the amount of the loan, the estate/heirs are not required to pay more than the value of the home at the time the loan is repaid Which means that if you choose to that if you sell the home to repay the loan, you or your heirs. Which means you will never owe more than the loan balance or the value of the property and no other asset other than the property will be used as payment.


There are different ways to receive your reverse mortgage loan, and if you want to determine the amount you can get you can use different reverse mortgage calculators online.

Term- monthly payments for a specific number of years

Line of credit – can be drawn to the maximum amount of eligibility.

Lump sum – a lump sum of cash that you will receive upon closing.

Tenure – monthly payments for the life of the loan.

Whatever choice you make or type of funding you choose when you get a reverse mortgage loan, It is always best to think things through and plan everything out before jumping in to unknown water. Finding out how much you can get with a reverse mortgage calculator will really help you understand the process. Finding out if you are eligible to get the loan, and knowing other necessary details about this loan will definitely help you think things through and guide you in your next move.