One of the most common questions about reverse mortgages is what happens to the home after the homeowners pass away. Will the bank take the house? Can it still be passed down to family? Will the heirs be responsible for the loan? These are important and valid concerns, so let’s go over what actually happens in a clear and straightforward way.

When the last surviving homeowner passes, the home becomes part of the estate or is transferred according to the homeowner’s will. At that point, there are three primary options for the heirs or estate:

1. Pay off the remaining balance
   This option depends on how much equity is left in the home and the financial resources available to the heirs. In some cases, a life insurance policy may be used to help with the payoff. Because reverse mortgages are FHA-insured, the amount required to repay the loan will never exceed the market value of the home—even if the housing market has declined.

2. Obtain a conventional loan
   If the heirs want to keep the home, they may be able to refinance it with a traditional mortgage. Many mortgage brokers are familiar with this process and can help identify the best path forward based on the situation.

3. Sell the home
   If there is no plan or desire to keep the property, the heirs can sell the home. The reverse mortgage loan is repaid through the sale, and any remaining equity after the loan is satisfied goes to the heirs. If the sale doesn’t fully cover the loan, the FHA insurance covers the difference—no additional money is owed.

If there are no heirs or the heirs decide they do not want the home, they are under no obligation to take further action. There is no personal liability for the loan.

It’s also helpful to know that lenders typically allow up to one year to settle the estate and manage the transition. This grace period is usually provided in three-month increments and extended as long as communication with the lender remains open and progress is being made.

Understanding the post-mortgage process helps families plan more effectively and removes some of the uncertainty that can come with estate planning. A reverse mortgage doesn’t prevent a home from being passed on—it simply adds structure to the process and allows families time to make informed decisions.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

Did you know that your home equity can play a meaningful role in reducing the overall risk of your retirement plan? For years, the home was often left out of the financial planning conversation, but that’s starting to change. More retirement experts are recognizing that using home equity through a reverse mortgage can be a valuable and underutilized strategy.

Let’s take a quick look at where many seniors currently stand when it comes to retirement readiness:

• Only 22 percent of workers are very confident they’ll have enough money saved for retirement
• 45 percent of Americans have no retirement savings at all
• Women are expected to live an average of 20 years beyond retirement, two years longer than men
• The average retiree will face approximately $220,000 in out-of-pocket healthcare costs
• Medicare typically covers only 62 percent of senior healthcare expenses, leaving 38 percent to be paid out-of-pocket
• 36 percent of near-retirees will rely solely on Social Security for income

Given these realities, a reverse mortgage can help address financial gaps in retirement. How the funds are used is entirely up to the borrower. Whether taken as a monthly payout, a line of credit, or a combination of both, reverse mortgage funds can be integrated with other retirement tools to provide added financial stability during the retirement years.

Reverse mortgages are available to homeowners aged 62 and older, including married couples. These loans allow borrowers to live mortgage payment free while continuing to own their home. Because reverse mortgages are federally insured and non-recourse, neither the borrower nor their heirs will be responsible for repaying more than the home is worth. There are also options for adult children or family members who may wish to keep the home in the family after the borrower passes.

For seniors looking to strengthen their retirement strategy, home equity may be one of the most overlooked—but powerful—tools available.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

For many who recall the early concerns surrounding reverse mortgages, the words “comfort” and “reverse mortgage” might not seem like a natural pair. But that perception has changed.

Since the FHA and HUD introduced regulatory improvements in 2015, reverse mortgages have become a much more stable and reliable option. Today, they’re gaining traction as a creative financial tool—whether the goal is to increase monthly cash flow, strengthen retirement savings, or even buy a new home.

Here are three ways a reverse mortgage can help make retirement more comfortable:

1. Supplement retirement income
   About 36% of baby boomers are planning to rely solely on Social Security during retirement. For those in this group, a reverse mortgage can provide an additional, non-taxable income stream by tapping into their home’s equity. Funds can be distributed as monthly payments or accessed through a line of credit. Because the loan isn’t due until the borrower passes away or permanently moves out of the home, it allows retirees to stay in their home while reducing financial stress.

2. Protect and enhance a retirement portfolio
   Even for those with solid retirement plans in place, a reverse mortgage line of credit can be a useful way to increase financial flexibility. Some retirees use it to delay drawing Social Security in order to maximize their benefits. Others use it as a buffer to allow investments more time to grow. Financial and retirement planners are increasingly looking at reverse mortgages as a strategic part of a long-term wealth management plan.

3. Purchase a retirement home
   It’s still not widely known, but a reverse mortgage can be used to buy a new home. This option is particularly helpful for those wanting to move into a senior-friendly community, relocate closer to family, or finally settle into their dream home. The Reverse Mortgage for Purchase program makes it possible for retirees to buy a home without taking on monthly mortgage payments—opening doors that might have seemed out of reach.

Reverse mortgages are specialized loans available to homeowners age 62 and older. They allow seniors to access home equity without monthly mortgage or loan payments. Funds can be received as a lump sum, monthly income, a growing line of credit, or used to purchase a new home. If you’re thinking ahead to retirement, working with a knowledgeable specialist can help tailor this option to your needs and goals.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

Before moving forward with a reverse mortgage, all applicants are required to complete a counseling session with a HUD-approved agency. This step is mandated by the Federal Housing Administration (FHA) to ensure that borrowers fully understand how a reverse mortgage works and how it may impact their financial future.

This counseling isn’t meant to convince anyone to move forward or to talk them out of it. Instead, the goal is to provide clear, unbiased education so that borrowers can make an informed decision with confidence.

What to Expect from the Counseling Process

The first step is for the borrower to schedule a session directly with a HUD-approved counseling agency. While your lender cannot initiate or attend this meeting, they can offer a list of agencies for you to contact. Sessions can take place either over the phone or in person. HUD generally recommends face-to-face meetings when possible, but both options are valid.

Before your appointment, the counseling agency will send you a packet of materials to help you prepare. These documents outline the key components of a reverse mortgage and give you a head start on the conversation.

During your counseling session, you’ll have the opportunity to:

• Discuss your current financial situation and long-term needs

• Review your reasons for considering a reverse mortgage

• Ask any questions you may have

• Explore both the benefits and drawbacks of a reverse mortgage

• Learn about alternative options that may also meet your needs

The counselor’s role is purely educational. They do not represent the lender and are not trying to sell or promote the loan product.

What Happens After the Session?

Once your session is complete, you’ll receive a Certificate of Completion. This document confirms that you’ve fulfilled the counseling requirement and have been fully briefed on the fundamentals of a reverse mortgage. A copy of the certificate will also be sent to your lender, allowing the loan process to move forward.

Most agencies also follow up with borrowers to ensure that all questions have been answered and to provide additional support if needed.

Why Counseling Matters

Reverse mortgages are an individualized financial tool, and no two borrowers are the same. This required counseling session helps make sure that every applicant enters the process with clarity, understanding, and the ability to make the decision that’s right for them.

If you’re thinking about a reverse mortgage, completing the counseling session is an important first step—not just because it’s required, but because it empowers you to move forward with confidence and peace of mind.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

It might come as a surprise, but only about 2–3% of older Americans use the Reverse Mortgage for Purchase option when buying a home. Even though this program is available, most seniors still rely on traditional financing or choose to pay in cash. So what’s holding them back?

Surveys and studies have identified three primary reasons:

1. They Don’t Know It’s an Option

Many seniors simply don’t know that a reverse mortgage can be used to purchase a home. Unfortunately, this is common. Real estate agents and lenders often aren’t familiar with the program or don’t know enough about it to recommend it. If you’re over 62 and thinking about buying a home, be sure to ask about the Reverse Mortgage for Purchase option. And if your current lender or agent can’t provide clear information, reach out to a reverse mortgage specialist who can.

2. Lack of Guidance from Real Estate Agents

Even when the option is mentioned, many real estate agents don’t have enough knowledge to walk a buyer through how it works. If you find yourself in this situation, don’t hesitate to ask for a referral to someone who specializes in reverse mortgages—or take the initiative to find a trusted expert yourself. You can still work with your real estate agent. 

3. Concerns About the Down Payment

Another reason some seniors pass on this option is the required down payment. The amount depends on a few factors, including the home’s purchase price, the borrower’s age, and current interest rates. While the idea of a larger down payment might seem like a hurdle, it’s important to remember that with a reverse mortgage, there are no monthly mortgage payments, which can offer substantial financial relief in the long term.

Basic Requirements to Qualify

To be eligible for a Reverse Mortgage for Purchase, you must:

• Be 62 or older (each borrower listed on the title must meet this requirement)

• Be purchasing a primary residence

• Have your down payment (“required investment”) from a HUD-allowable source — such as the sale of another home, personal savings held for 90+ days, a gift, or inheritance (borrowed funds are not allowed)

If you’re considering purchasing a new home in retirement, don’t overlook this powerful financing tool.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder, and surrounding areas across Colorado’s Front Range, as well as the Cheyenne and Laramie communities in Wyoming. Reach out today to learn more about how a reverse mortgage could help you purchase your next home.