Reverse Mortgage Loans:
Unlock Your Home Equity
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Convert your home equity into tax-free cash to supplement your retirement income, cover healthcare expenses, or fund home improvements.
Connect with Top RI Mortgage Brokers
Stay in Your Home
Maintain ownership while accessing your equity
Tax-Free Cash
Receive funds that are not considered taxable income
FHA Insured
Government-backed protection for borrowers
No Monthly Payments
Loan is repaid when you sell or leave the home
What is a Reverse Mortgage?
A reverse mortgage is a unique financial solution designed for homeowners aged 62 and older. It allows you to convert a portion of your home equity into tax-free cash without selling your home or making monthly mortgage payments. This can be a powerful way to supplement retirement income, cover medical expenses, or fund lifestyle goals—while remaining in the home you love.
How It Works
Unlike a traditional mortgage where you pay the lender, a reverse mortgage pays you—based on your home’s equity, age, and current interest rates.
- You retain ownership and remain on the title.
- No monthly mortgage payments are required.
- The loan is repaid when you sell the home, move out permanently, or pass away.
- You must continue to pay property taxes, insurance, and maintain the home.
Reverse Mortgage Payment
Reverse mortgages are flexible, offering several ways to access your funds based on your financial goals:
- Lump Sum – Receive all your money upfront at closing.
- Monthly Payments – Get fixed payments each month for a set term or for as long as you live in the home.
- Line of Credit – Access funds as needed, with unused credit potentially growing over time.
- Combination – Blend monthly payments with a line of credit or lump sum to suit your needs.
Types of Reverse Mortgages
There are three main types of reverse mortgage products available:
- Home Equity Conversion Mortgage (HECM)
- Proprietary reverse mortgages
- Single-purpose reverse mortgages
Home Equity Conversion Mortgage (HECM)
The Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage and is insured by the Federal Housing Administration (FHA). Designed for homeowners aged 62 and older, a HECM provides peace of mind with built-in protections like FHA insurance and mandatory counseling to help borrowers fully understand the loan terms. With a HECM, you can convert a portion of your home’s equity into cash without selling your home or making monthly payments. The amount you can borrow depends on your age, current interest rates, and the appraised home value or FHA lending limit—whichever is lower.
Reverse Mortgage Requirements
To qualify for a reverse mortgage—specifically a Home Equity Conversion Mortgage (HECM)—you must meet a set of eligibility standards related to age, property type, and financial responsibility.
Borrower Requirements
Age Requirement
All borrowers must be 62 years of age or older
Primary Residence
The home must be your principal residence
Financial Assessment
Ability to pay property taxes, insurance, and home maintenance
HUD Counseling
Completion of a HUD-approved counseling session
No Federal Debt Delinquency
Strong, stable income with detailed documentation
Documentation Needed
Eligible Property Types
Single-family homes, 2–4 unit properties, HUD-approved condos, or manufactured homes that meet FHA requirements
Home Equity
You must have significant equity in your home (typically at least 50%)
Property Condition
The property must meet FHA minimum property standards
Mortgage Status
Your current mortgage must be paid off with reverse mortgage proceeds or already be fully paid
FHA Appraisal
The property must be appraised by an FHA-approved appraiser
- Reverse Mortgage Costs
Reverse mortgages include several costs that borrowers should be aware of:
- Mortgage Insurance Premium (MIP):
2% of the home’s appraised value upfront, plus an annual 0.5% of the outstanding loan balance - Origination Fee:
Lenders can charge up to $6,000, depending on the home’s value - Closing Costs:
Similar to traditional mortgages—includes appraisal, title search, inspections, and other standard fees - Servicing Fees:
Monthly fees charged by the lender to service and administer the loan
Most of these costs can be financed into the reverse mortgage itself, reducing your out-of-pocket expenses at closing.
How Reverse Mortgages Work
Understanding the process from application to repayment can help you make an informed decision.
Reverse Mortgage Requirements
To qualify for a reverse mortgage, borrowers must meet specific eligibility requirements related to age, property, and financial obligations.
Benefits
Important Considerations
No Monthly Mortgage Payments
You’re not required to make monthly mortgage payments, though you can choose to make payments at any time without penalty.
Costs and Fees
Reverse mortgages include upfront costs and ongoing fees that can be higher than traditional mortgages.
Tax-Free Proceeds
The money you receive is considered loan proceeds, not income, so it’s not taxable (consult a tax advisor).
Decreasing Equity
Your home equity will decrease over time as loan balances increase due to interest and fees.
Flexible Payment Options
Choose from lump sum, monthly payments, line of credit, or a combination to suit your financial needs.
Impact on Inheritance
Less equity may be available for heirs, though they can keep the home by paying off the loan balance.
Non-Recourse Loan
You or your heirs will never owe more than the home is worth when the loan is repaid.
Potential Benefit Impact
Loan proceeds could affect eligibility for need-based programs like Medicaid (consult a benefits specialist).
Why Choose Us?
At RI Mortgage Brokers, we help Rhode Island seniors convert home equity into tax-free cash through reliable reverse mortgage solutions. With personalized guidance, clear options, and knowledge of federal HECM protocols, we assist you in preserving home ownership, enhancing retirement income, and navigating the future with financial peace of mind.
License & Regulated
We’re deeply committed to your peace of mind. As fully registered advisors in Rhode Island’s secure HECM space, we uphold the highest ethical standards. Thus, you receive reliable, compliant guidance—and exceptional care throughout your reverse mortgage journey.
Competitive Mortgage Rates
We help you secure reverse mortgage terms with competitive upfront mortgage insurance premiums and interest pacing. Therefore, you gain more favorable access to your home equity—maximizing your monthly or lump-sum payouts with minimal upfront cost.
Local market Expertise
We understand Rhode Island’s housing market and how local appraisals impact reverse loan limits. Thus, we help you tap into the right equity, matched to local property values, for a reverse mortgage that fits your needs perfectly.
Expert Guidance
Our team can explain HECM facts in simple language—from disbursement options to repayment terms—and guide you through counseling requirements. As a result, you make well-informed decisions that support your retirement goals with confidence and clarity.
Higher Approval
We specialize in reverse mortgage underwriting and guide seniors through eligibility requirements, financial assessments, and documentation. As a result, more aging homeowners qualify for reverse mortgages and gain access to tax-free equity while remaining in their homes.
Fast Application Process
Our company streamlines the reverse mortgage process using efficient tools and proactive support. Consequently, seniors move through counseling, application, and approval stages smoothly, so they can begin receiving funds sooner for their finances.
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Why Choose Us?
Competitive Rates
We shop multiple lenders to find you the best rates and terms for your situation.
Fast Closings
Our streamlined process helps you close on your loan quickly and efficiently.
Dedicated Refinance Mortgage Specialists
Work with experienced professionals who specialize in reverse mortgage solutions tailored for homeowners aged 62 and older.
We’re available Monday-Friday from 9AM-5PM and Saturdays by appointment. Evening appointments are also available upon request.
Contact Us Directly
- (401) 500 7702
- Info@rimortgagebrokers.com
- Mon-Fri: 9AM - 6PM
FAQs
Find answers to common questions about jumbo loans and the mortgage process.
A reverse mortgage is a type of loan available to homeowners aged 62 and older that allows them to convert a portion of their home equity into cash—without having to sell the home or make monthly mortgage payments.
To qualify, you must be at least 62 years old, live in the home as your primary residence, have sufficient home equity (typically 50% or more), and be able to maintain the property and pay property taxes and insurance.
No. You retain ownership and the title of your home as long as you live in it, keep it in good condition, and meet the loan requirements.
The loan becomes due when the last borrower passes away, moves out of the home permanently, or sells the property. At that point, the home is typically sold to repay the loan.
The amount depends on your age, the value of your home, current interest rates, and the type of reverse mortgage. Generally, older homeowners with more home equity qualify for more funds.
You can choose to receive your funds as a lump sum, monthly payments, a line of credit, or a combination of these options.
No. Reverse mortgage proceeds are considered loan advances and are not taxable income. However, you should consult a tax advisor for personalized advice.