Clear up the myths. See how HECM reverse mortgages work — payout options, ownership, heirs, and costs — then decide with Ryan Minick & Steve DeLon at Luminate Bank whether unlocking home equity fits your retirement plan.
A reverse mortgage converts part of your home equity into cash without a required monthly principal-and-interest payment while you live in the home as your primary residence and keep taxes, insurance, and maintenance current. Most borrowers use an FHA-insured Home Equity Conversion Mortgage (HECM).
You keep ownership and title. The loan is a lien against the property. Proceeds can come as a lump sum, monthly tenure or term payments, a growing line of credit, or a combination — subject to age, home value, rates, existing mortgages, and first-year draw rules.
The balance typically becomes due when the last borrower permanently leaves the home, sells, or passes away. Ryan and Steve walk through counseling, available proceeds, property charges, and heir options before you decide.
Choose the payout structure that matches your retirement cash-flow goals — then confirm proceeds with a personalized estimate.
Take a larger draw at closing (within HECM first-year limits on many adjustable products) to pay off an existing mortgage, cover major expenses, or fund a purchase with HECM for Purchase.
Receive tenure payments for as long as you live in the home, or term payments for a set number of months — useful for predictable retirement income.
Leave unused funds in a HECM line of credit that can grow over time. Draw only what you need — often a fit when Medicaid or SSI resource rules matter.
On higher-value homes above FHA HECM limits, proprietary jumbo reverse mortgages may offer larger proceeds with different fees and rules — compare carefully with a HECM.
HECM reverse mortgages follow a clear sequence — counseling first, then application, appraisal, and closing.
Step 1
Complete required reverse mortgage counseling with an approved counselor and receive your certificate before the loan can proceed.
Step 2
Ryan and Steve review your goals, property, existing mortgage (if any), and complete the HECM financial assessment.
Step 3
An appraisal establishes home value. Underwriting confirms eligibility, title, and how much you can receive under current HECM formulas.
Step 4
After closing and any cooling-off period, funds disburse per your chosen payout option — subject to first-year draw limits on HECMs.
Mortgage Knowledge Center
Straight answers on eligibility, ownership, heirs, payout options, costs, counseling, condos, manufactured homes, Social Security, Medicaid, and whether a reverse mortgage is right for you.
Ryan & Steve will walk through equity, proceeds, property charges, and heir options — so you can decide with clear numbers, not myths.