Retirement should bring financial peace of mind, but all too often retirees find themselves running low on essential funds due to medical bills, credit card debt, or other expenses. Retirees often put themselves under undue financial stress to meet these obligations without capitalizing on one of their largest investments: the value of their home.

A reverse mortgage allows seniors to access the equity they’ve built up in their home. It’s called a reverse mortgage because instead of you making payments on the loan, you receive cash payments from the wealth you’ve amassed in your equity. If one of the owners of your home is 62 or older, you may qualify for a reverse mortgage to eliminate your current mortgage payments and receive extra cash.

You have full control over how to use reverse mortgage proceeds. A reverse mortgage frees up your equity so you can use it now, when you need it. Some people simply want to live without the specter of next month’s mortgage payment threatening their financial well-being. Others need cash to meet the expenses of medical bills or independent living assistance. Still, others need a little extra to pay for home renovations, a new car, or to take that vacation they’ve always dreamed of – the choice is yours.

The mortgage is a non-recourse loan, meaning the borrower will never owe more than the home is worth. With your passing, your heirs can choose to sell the property to pay off the loan, or refinance the entire amount of the existing mortgage balance, regardless of the home’s appraised value.

Seniors only need to repay reverse mortgages when the last surviving borrower sells the home or permanently leaves the residence. Until one of these conditions is met you live in your home and make no payments. Your annual obligations include property maintenance, property taxes, and insurance payments.


What is a Reverse Mortgage Like?

A reverse mortgage is an excellent solution for seniors with moderate to high equity in their home who need some extra cash or financial relief without any credit requirements. The loans are available only to homeowners, at least one of whom is 62 years of age and older, and provide a number of benefits, including:

  • paying off a current mortgage, should you have one
  • allowing seniors to live in their home without making monthly mortgage payments – Homeowner is responsible for property taxes, insurance and maintenance
  • providing tax-free money for any use – Please consult with a financial adviser
  • ability to pay monthly bills and live comfortably
  • providing freedom from medical bills and debt
  • providing cash for remodeling or home renovations
  • retaining ownership of your home – Homeowner is responsible for property taxes, insurance and maintenance

What is a reverse mortgage? It’s a financial option that may allow you to enjoy a more comfortable retirement and maintain your independence.


Reverse Mortgage Options and Obligations

Reverse mortgages allow homeowners to access their equity in several ways. You can receive money as a lump sum, a line of credit, a monthly payment, or any combination of the three depending on the loan program that you choose. You retain the title to your home, and are responsible for all property taxes, insurance costs, and house maintenance—all of which can be paid out of cash secured by the loan.

For homeowners’ protection, reverse mortgages are designed so you cannot owe more than your house is worth. The loan itself does not come due for as long as you live in the house as your primary residence and as long as you keep your property taxes, insurance up to date and the home adequately maintained.

C2 Financial offers three different loan options:

  • HECM Fixed
  • HECM Line of Credit
  • HECM for Purchase.

A HECM for purchase loan differs from other reverse mortgages. Instead of access existing equity, the loan gives seniors an opportunity to purchase a home without making monthly mortgage payments (Homeowner is responsible for property taxes, insurance and maintenance)


See Below for More Reverse Mortgage Information


Reverse Mortgage FAQ’s          

Compare Reverse Mortgage to HELOC    

Reverse Mortgage Products

Reverse Mortgage Process