Reverse Mortgage (HECM & Proprietary Programs)
For eligible homeowners, a reverse mortgage converts part of your home equity into cash without required monthly mortgage payments. You keep title and must continue to pay property taxes, homeowners insurance, HOA dues (if any), and maintain the home.

Who Qualifies

• Age 62+ for FHA HECM (some proprietary programs may allow lower minimum ages)
• Primary residence (single-family, select condos, some 2–4 unit properties)
• Sufficient equity and ability to meet ongoing property charges
• HUD-approved counseling required for HECM

Benefits

• No required monthly mortgage payment — you can make voluntary payments anytime; the loan is due when you sell, move, or no longer meet program terms.
• Multiple ways to receive funds — lump sum, monthly payments (tenure or term), a line of credit, or a combination.
• Line of credit growth (HECM) — unused credit can increase over time under program rules.
• Stay in your home — access equity while aging in place.
• Non-recourse protection — you or your heirs never owe more than the home’s value at sale.
• Tax flexibility — advances are generally not taxable income (consult a tax advisor).

Responsible Use Ideas

• Improve monthly cash flow by paying off an existing mortgage
• Supplement retirement income or fund in-home care
• Build an emergency reserve with a standby line of credit
• Finance repairs or accessibility upgrades

What to Know (Risks & Obligations)

• You must pay property taxes, homeowners insurance, and HOA dues (if any) and maintain the home.
• Interest and fees accrue on the outstanding balance over time.
• When you leave the home permanently, the loan becomes due; heirs can sell the property, refinance, or satisfy the balance.
• Can affect means-tested benefits (e.g., Medicaid). Consult qualified advisors.
• Counseling (HECM) is mandatory and helps ensure you understand costs, responsibilities, and alternatives.

Process

1. Consultation & HUD counseling (for HECM)
2. Application, appraisal, and underwriting to determine your principal limit
3. Choose disbursement option(s)
4. Close & receive funds
5. Ongoing obligations: live in the home as your primary residence, pay taxes/insurance/HOA, and maintain the property
6. Loan becomes due when program conditions are no longer met

Star Financial • NMLS 1429 • Serving CA, TX & FL

Disclosures: Not a commitment to lend. Subject to credit approval, property eligibility, counseling (HECM), and program availability. Borrower must continue to pay taxes, insurance, HOA dues (if any), and maintain the property. Terms, conditions, and fees may change without notice. Consult tax, legal, and financial advisors.