- repayment: The loan becomes due when you pass away, sell the home, or move out permanently. The loan balance is repaid, and any remaining equity belongs to you or your heirs.
Types of reverse mortgages:
- Home Equity Conversion Mortgage (HECM): The most common type, insured by the Federal Housing Administration (FHA).
- Proprietary reverse mortgage: Offered by private companies, these loans may have different terms and requirements.
- Reverse mortgage for purchase: Allows you to use a reverse mortgage to purchase a new home.