Reverse Mortgage Options

At Sound Financial Mortgage, we help homeowners 62 and older use their home equity with confidence and clarity. A reverse mortgage can support retirement plans, provide additional cash flow, and allow you to stay in the home you love — without monthly mortgage payments.

(You must continue paying property taxes, homeowners insurance, and maintaining the home.)

What is a reverse mortgage?

A reverse mortgage converts a portion of your home’s equity into tax-free funds. You retain ownership of your home and can choose how you receive the money — lump sum, monthly payments, or a growing line of credit.

People use reverse mortgages to:

• Enhance monthly retirement income
• Pay off an existing mortgage or debts
• Cover medical or long-term care expenses
• Fund home improvements
• Help delay Social Security

HECM — Home Equity Conversion Mortgage (FHA-Insured)

This is the most common reverse mortgage option in the U.S.

Key features:

• Backed by FHA consumer protections
• Required HUD-approved counseling
• Flexible payout structures
• Non-recourse — neither you nor your heirs will owe more than the home’s value at repayment

Best for borrowers looking for strong protections and stable program guidelines.

Proprietary (Jumbo) Reverse Mortgages

Proprietary reverse mortgages are private alternatives designed for higher-value homes that exceed HECM loan limits.

Key features:

• Larger borrowing potential
• Flexible lender-specific program terms
• Not FHA-insured

Best for homeowners with higher home values and significant home equity who want to maximize access to funds.

Quick Comparison

Eligibility

To qualify, you typically must:

• Be at least 62 years old for HECM and some proprietary programs can utilize a younger age
• Live in the home as your primary residence
• Maintain the ability to pay taxes, insurance, HOA Dues, and upkeep
• Complete HUD counseling (HECM only) or lender approved counseling for Jumbos

Important Considerations

Reverse mortgages include interest and fees that get added to the loan — meaning the balance increases over time. To keep the loan in good standing, you must continue:

• Paying homeowners insurance and property taxes
• Maintaining the home
• Living in the home as your primary residence

Reverse mortgages generally do not affect Medicare or Social Security, but needs-based programs like Medicaid may be impacted. Consult a qualified advisor if applicable.

What Happens When You Leave the Home?

The loan becomes due when the last borrower or eligible non-borrowing spouse no longer lives in the home as a primary residence. Your heirs may:

• Pay off the loan and keep the home
• Sell the home and use proceeds to pay the balance
• Allow the lender to sell the home to satisfy the loan

For HECMs, heirs will never owe more than the home’s market value at repayment (program rules apply).

Your Reverse Mortgage Specialist

John Barlow
President — Sound Financial Mortgage LLC
NMLS #109202

Phone: 206-387-0327
Email: john@soundfinmtg.com

We offer a friendly, no-pressure consultation where we walk through real numbers and help you determine whether a reverse mortgage is the right fit for your financial goals.

Start with Sound Advice

If you’re exploring how home equity can support a more secure retirement, we’re here to help — with clarity, transparency, and personalized guidance every step of the way.

Call or email today to schedule your free consultation.