How It Works · 7 min read
How Does a Proprietary Reverse Mortgage Work?
A proprietary reverse mortgage is a privately offered loan program secured by a residence. It is designed for eligible homeowners — generally approximately age 55 and older, depending on the program — who want to access a portion of their home equity.
The homeowner generally retains ownership of the property while the lender holds a lien, subject to the loan terms.
Qualifying structures generally do not require monthly principal-and-interest mortgage payments. Interest and applicable costs may accrue to the loan balance rather than being paid through required monthly principal-and-interest payments.
The balance is generally repaid later when the loan becomes due — typically when the home is sold, the borrower permanently leaves the home, or another contractual maturity event occurs, subject to the specific loan terms.
Borrowers generally remain responsible for obligations such as property taxes, insurance, maintenance and occupancy requirements under the loan terms. Lender underwriting requirements still apply.
Check your equity
See an illustrative estimate of your home equity and the portion that may potentially be accessible.
Illustrative information only. This calculator does not constitute an offer, approval, commitment to lend or guarantee of available proceeds. Actual eligibility and proceeds depend on borrower age, property value, appraisal, existing liens, property characteristics, interest rates, applicable proprietary program and lender underwriting requirements. Interest and applicable costs may accrue to the loan balance. Program availability and terms vary.