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A Reverse Mortgage is a loan from a lender on the equity in your home. You still retain title, ownership and control of your home. The lender receives a recorded lien but never goes on title with you.
With a Reverse Mortgage, the lender sends cash to you. The more cash you receive the greater the loan balance, but you make no monthly repayments for as long as you live at home.
A Reverse Mortgage is a 'non-recourse' loan. This means there is 'no personal liability' to you or your Heirs. No matter what, the lender can only look to the property for repayment (FHA would make up any shortage to the lender).
Repayment is due after all Homeowners permanently vacate the home (die, sell, or permanently move out). That payment comes out of the equity in your home, or by any other means you chose.
Any excess equity goes to you or your Heirs. Typically, the property is sold and the loan is repaid. Any remaining equity belongs to you or your Heirs.
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