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reverse mortgage

A reverse mortgage, like a traditional mortgage, allows homeowners to borrow money using their home as security for the loan.  Also like a traditional mortgage, when you take out a reverse mortgage, the title to your home remains in your name. The Reverse allows a homeowner to utilize the dormant equity in their home and turn it into an active asset; without having to qualify as with a traditional mortgage.

However, unlike a traditional mortgage, borrowers don’t make monthly mortgage payments on a Reverse Mortgage. The loan is repaid when the borrower no longer permanently lives in the home

First Hometown Mortgage offers the FHA insured Home Equity Conversion Mortgage (HECM), for refinance and purchase; helping those 62 and older utilize the equity in their home or to purchase the “right-sized” home which will better fit their lifestyles.

To be eligible

Be 62 years of age or older

Occupy the property as your principal residence

Not be delinquent on any federal debt

Participate in a consumer information session given by an approved HECM counselor

Be able to continue to pay real estate taxes and homeowner’s insurance


Eliminate monthly mortgage payments*

Increase purchasing power

Retain savings/profit from home for life expenses

Right-size to a smaller, lower maintenance home

Lower their cost of living during retirement

Buy a home closer to family or friends

Enjoy carefree living in a senior housing community

*The borrower must live in the home as their primary residence, continue to pay required property taxes, homeowner’s insurance and maintain the home.

Eligible properties

Single family

2-4 units, as long as one unit is the borrower’s primary residence

FHA Approved Condominiums and PUDs