Reverse Mortgage Loans for Seniors in Indiana
Reverse mortgages provide a way for homeowners age 62 and older to access the equity in their homes without selling or moving. Backed by the U.S. Department of Housing and Urban Development (HUD), these government-insured loans offer tax-free cash with no required monthly payments for as long as you live in the home.
How a Reverse Mortgage Works
- Receive tax-free cash in monthly payments, a lump sum, a line of credit, or a combination.
- No monthly mortgage payments required while you remain in the home
- Credit score and income checks are typically not required
- Social Security and Medicare benefits are not affected
- The loan is repaid when the home is sold or the borrower no longer occupies the home
- Remaining home equity can be passed on to heirs after the loan is repaid
Important Considerations
With a reverse mortgage, you remain the homeowner and must continue paying property taxes, insurance, and maintaining the home. The loan balance grows over time, which means your home equity will decrease. Failing to meet these conditions can cause the loan to become due in full.
Who Qualifies for a Reverse Mortgage?
- You must be at least 62 years old (some spouse exceptions apply)
- The home must be your primary residence
- You must either own your home outright or have a low existing mortgage balance
- All borrowers must attend HUD-approved counseling and sign the loan documents
Eligible Property Types
- Single-family homes (one-unit)
- 2–4 unit homes where you live in one of the units
- HUD-approved condominiums and certain planned unit developments
How Loan Amounts Are Determined
The amount you can borrow depends on:
- The age of the youngest borrower
- The current appraised value of your home
No income or credit qualifications are required to determine loan size.
What Is a HECM?
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), the only program insured by the Federal Housing Administration (FHA). HECM loans offer flexible payout options, including:
- Monthly income for life or a fixed term
- Line of credit (use what you need, when you need it)
- Lump sum at closing
- Combination of all three
All HECM applicants must complete HUD counseling to ensure a full understanding of the program.
Is a Reverse Mortgage Right for You?
A reverse mortgage may be a smart solution for supplementing retirement income, paying off debt, making home improvements, or reducing financial stress.
Our experienced team at American Hero Home Loans is here to help you evaluate your options and determine whether a reverse mortgage aligns with your financial goals.
Contact us today to schedule a free consultation or learn more about reverse mortgage benefits for Indiana homeowners.
