Reverse Mortgage (HECM) for Homeowners 62+

Turn Your Home Equity Into Monthly Income — No Payments Required

If you're 62 or older and have built up equity in your Redding-area home, a reverse mortgage lets you access that equity as cash — without selling your home or taking on a monthly mortgage payment. Pete Metz walks Shasta County homeowners through the process step by step.

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62+

Minimum Age

$0

Monthly Payments*

FHA

Insured Program

Non-Recourse

Built-In Protection

The Basics

What Is a Reverse Mortgage?

A reverse mortgage — technically called a Home Equity Conversion Mortgage, or HECM — is a loan insured by the FHA that lets homeowners 62 and older convert part of their home equity into cash. Instead of you making payments to a lender each month, the lender pays you, either as a lump sum, a line of credit, fixed monthly payments, or some combination of the three.

You keep the title to your home and continue living in it as your primary residence. You're still responsible for property taxes, homeowners insurance, and basic upkeep, but there's no required monthly mortgage payment. The loan balance grows over time as interest accrues, and it's typically repaid when you sell the home, move out permanently, or pass away — usually through the sale of the home, with any remaining equity going to you or your heirs.

Pete Metz and his team have helped homeowners throughout Redding and Shasta County evaluate this option, and it's one of the most misunderstood loan products out there — so getting clear, honest answers matters.

Plain-English Version

You've spent years paying down your mortgage and building equity. A reverse mortgage flips that relationship — instead of you paying the bank, the bank pays you, using the equity you've already built as the source. You stay in your home. There's no monthly payment. When you eventually leave the home, the loan gets settled, and anything left over is yours.

The Advantages

Why Homeowners Choose a Reverse Mortgage

No Monthly Mortgage Payments

Access your equity without adding a monthly payment to your budget. You're still responsible for taxes and insurance, but the loan itself doesn't require monthly repayment.

You Keep the Title to Your Home

A reverse mortgage is still a mortgage — you retain ownership. It doesn't transfer your home to the lender or to Von Mortgage.

Access Cash Without Selling

Stay in the home and neighborhood you love while still putting built-up equity to work for your retirement.

Non-Recourse Protection

HECMs are FHA-insured non-recourse loans — you or your heirs will never owe more than the home is worth at repayment, even if the loan balance is higher.

Choose How You Get Paid

Take proceeds as a lump sum, a line of credit, scheduled monthly payments, or a mix — whatever fits your retirement plan.

Proceeds Generally Aren't Taxed as Income

Because it's loan proceeds, not income, funds are typically not subject to income tax. Always confirm with a tax advisor for your situation.

Backed by FHA Insurance

The HECM program is insured by the Federal Housing Administration, adding a layer of protection and standardized borrower safeguards.

Flexible Use of Funds

Use the money for anything — medical costs, home repairs, paying off an existing mortgage, supplementing retirement income, or helping family.

A Guided, Step-by-Step Process

Pete and the Von Mortgage team walk you through required counseling, paperwork, and underwriting so nothing catches you off guard.

The Process

The Reverse Mortgage Process

1

Free Consultation

Talk with Pete about your goals, your home's estimated equity, and whether a HECM makes sense for your situation.

2

Required HUD Counseling

Complete a session with an independent, HUD-approved counselor. This is a federal requirement designed to make sure you understand the loan before moving forward.

3

Application & Financial Assessment

Submit your application. The lender reviews income, credit history, and residual income to confirm you can keep up with taxes and insurance long-term.

4

Home Appraisal & Underwriting

An FHA-approved appraiser confirms your home's value, and underwriting finalizes your available loan amount and payout options.

5

Closing & Funding

Sign closing documents, and after a short rescission period, your funds are disbursed according to the payout option you chose.

The Comparison

Reverse Mortgage vs. Other Ways to Access Equity

Feature	Recommended for 62+ Reverse Mortgage (HECM)	HELOC	Selling Your Home
Monthly Payment Required	No*	Yes	N/A
Age Requirement	62+	None	None
Keep Home Ownership	Yes	Yes	No
Income/Credit Qualification	Financial assessment, more flexible	Traditional income/credit underwriting	N/A
Access to Home Equity	Yes, without moving	Yes, without moving	Full equity, but home is gone
Best For	Retirees wanting cash flow without payments	Homeowners comfortable with monthly payments	Those ready to relocate or downsize

*You remain responsible for property taxes, homeowners insurance, and home maintenance.

Do You Qualify?

Reverse Mortgage Eligibility

Minimum Age

Youngest borrower on title must be 62 or older.

Primary Residence

The home must be your primary residence — you must live in it most of the year.

Home Equity [VERIFY: %]

You'll typically need significant equity — often 50% or more — though the exact amount depends on age, current rates, and home value. Confirm current guideline before publishing.

Eligible Property Types

Single-family homes, 2–4 unit owner-occupied properties, FHA-approved condos, and certain manufactured homes meeting HUD standards.

HUD-Approved Counseling

Required before applying — an independent counselor reviews the loan with you.

Credit & Income Review [VERIFY]

No traditional minimum credit score, but a financial assessment reviews credit history, income, and residual income. Confirm current overlay with underwriting.

Ability to Cover Taxes & Insurance

You must show the ability to keep paying property taxes, homeowners insurance, and HOA dues (if applicable) for the life of the loan.

Existing Mortgage Balance [VERIFY]

Any current mortgage balance must be low enough to be paid off using the HECM proceeds, or paid off separately at closing.

FHA Lending Limit [VERIFY: current figure]

Loan amounts are subject to the current FHA HECM lending limit, which is updated annually — confirm the current figure before publishing.

Reverse Mortgage FAQs

What is a reverse mortgage (HECM)?

A reverse mortgage, also called a Home Equity Conversion Mortgage (HECM), is an FHA-insured loan that lets homeowners 62 and older convert home equity into cash without selling their home or making monthly mortgage payments. The loan is repaid when the borrower sells the home, moves out permanently, or passes away.

How do I qualify for a reverse mortgage?

To qualify for a HECM, the youngest borrower on title must be 62 or older, the home must be your primary residence, and you must have sufficient home equity. You'll also need to complete HUD-approved counseling and pass a financial assessment confirming you can keep up with property taxes, insurance, and maintenance.

Do I still own my home with a reverse mortgage?

Yes. A reverse mortgage is a loan against your home, not a sale. You keep the title and remain the owner, and you can continue living in the home as long as you meet the loan requirements, such as paying property taxes and insurance.

Can I lose my home with a reverse mortgage?

You can lose your home if you fail to pay property taxes, homeowners insurance, or HOA dues, or if you no longer use the home as your primary residence. As long as you meet these ongoing obligations, you can remain in the home for as long as you live there.

How do I receive the money from a reverse mortgage?

You can choose to receive reverse mortgage proceeds as a lump sum, a line of credit, fixed monthly payments for as long as you live in the home, or a combination of these options, depending on which fits your financial plan.

What happens to a reverse mortgage when I pass away?

When the last surviving borrower passes away, the loan becomes due. Heirs typically have the option to repay the loan and keep the home, sell the home to pay off the balance and keep any remaining equity, or let the lender sell the home, since HECMs are non-recourse loans and heirs are never responsible for more than the home's value.

Is reverse mortgage money taxable income?

Reverse mortgage proceeds are generally considered loan proceeds rather than income, so they're typically not subject to federal income tax. Every situation is different, so it's a good idea to confirm your specific tax treatment with a qualified tax advisor.

What's the difference between a reverse mortgage and a HELOC?

A HELOC requires monthly payments and standard income/credit underwriting, and it's available to homeowners of any age. A reverse mortgage (HECM) is limited to homeowners 62 and older, doesn't require monthly payments, and uses a financial assessment rather than traditional income qualification.

Does Von Mortgage offer reverse mortgages in Redding and Shasta County?

Yes. Pete Metz and the Von Mortgage team help homeowners throughout Redding and Shasta County evaluate whether a reverse mortgage (HECM) fits their retirement goals, and guide them through counseling, application, and closing.

Ready to See What Your Home Equity Can Do for You?

Talk with Pete Metz about whether a reverse mortgage fits your retirement plan — no obligation, no pressure.

Schedule Your Free Consultation! Apply Now View Our Rates!

Prefer to talk it through first? Call (530) 221-7700

Turn Your Home Equity Into Monthly Income — No Payments Required

What Is a Reverse Mortgage?

Why Homeowners Choose a Reverse Mortgage

The Reverse Mortgage Process

Reverse Mortgage vs. Other Ways to Access Equity

Reverse Mortgage Eligibility

Reverse Mortgage FAQs

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