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.