How Does a Reverse Mortgage Work?

A reverse mortgage allows homeowners who are 62 years or older to access a portion of the equity in their homes without having a monthly mortgage loan payment.

  • No loan repayment is required as long as the borrower owns and lives in the home.*
  • There are limited income, asset, and credit requirements
  • The homeowner retains title and ownership of the home
  • Cash advances can be used for any purpose

What can I use the money for?

  • Pay off current mortgage or debts
  • Property taxes/ home insurance
  • Home repairs
  • Everyday living expenses
  • Retirement Planning
  • Medical expenses or in-home care

How can I qualify? 

  • Any homeowner who is 62 years or older
  • You must be living in the home as your primary residence

How much money can I get? 

The amount you can get depends on:

  • Youngest borrower’s age**
  • The home value
  • Current interest rates
  • The HUD loan limit in your area

How is it paid to me?

You can choose how to receive your money.

You can receive it:

  • As a Lump Sum at the closing of the loan
  • As a Monthly Cash Advance
  • As a Line of Credit


Any combination of the above three options

When do I pay it back?

When the home is sold or when the last surviving spouse or borrower dies or moves away for 12 months in a row.

Are Reverse Mortgages Safe?

  • Reverse mortgages are insured by the U.S. Dept. of HUD
  • Payments to borrowers are guaranteed by the U.S. government
  • They are available through HUD Approved lenders
  • Independent HUD counseling is required prior to application
  • Does not affect Social Security or Medicare benefits***.

How do I apply for a Reverse Mortgage?

First you must obtain a counseling certificate from a HUD-approved counseling agency (we can supply you with a list of national and local agencies from which you can choose). After receiving your counseling certificate, you can make an application with a 1st Nations Reverse Mortgage Specialist. Under normal circumstances, the entire process should take approximately 30 – 45 days.


Who do I contact first?

If you would like more information about reverse mortgages, or if you would like an appointment to make an application call: (800) 720-7003.

* Borrower must continue to pay property taxes, insurance, applicable maintenance and association fees, and maintain the property.  Failure to do so may result in foreclosure.

** Or the age of an eligible non-borrowing spouse.

*** SSI and Medicaid benefits may be affected.  Get professional advice.