How can you use it?

How Can You Use The Funds From Your HECM Reverse Mortgage?

The short answer: spend it any way you like. There are no restrictions on how you use the money from your reverse mortgage, and you can fund anything you like. To give you some examples, below are some common uses for reverse mortgage proceeds:

Use The Funds To Pay For Your Property Taxes And Homeowner's Insurance

Many individuals take an annual or semi-annual disbursement from their Reverse Mortgage to pay for their property taxes and homeowner's insurance. By doing this, they are essentially using the equity in their home to pay their monthly housing expenses while choosing to not have a monthly payment. Eliminate the stress that comes with the tax bill arriving in the mail!

Increase Cash Flow to Help Pay Expenses

Because no monthly mortgage payments are required, you can redirect that money toward other things—everyday expenses, bills, credit-card balances or other debts. Keep in mind that you’ll need to keep current with property taxes, homeowners insurance, and maintenance.

Offset Healthcare Costs

Today, many retirees want to “age in place,” so they can remain in their homes and not have to go to a senior community, assisted living facility, or downsize to a smaller home. The funds you receive from a reverse mortgage can help make it possible.

Plan for the Future

A reverse mortgage loan allows you to establish a line of credit1 to make sure that you’re better prepared for unexpected expenses, or to help pay for long-term care. This financial “safety net” can help provide peace of mind today, and financial protection in the future.

Update Your Home to Fit New Needs

Making much-needed repairs, or modifications to fit your needs as you age, can help you live more comfortably and remain in your home for a longer period of time. A reverse mortgage can help make it easier to afford these updates and improve your quality of life.

Lower Your Taxable Income

You can avoid making taxable withdrawals from 401(k) or other retirement plans by replacing this money with reverse mortgage proceeds which are income tax-free.2 This may also allow you to delay drawing funds from your retirement account, so they can continue to grow.

Help the Ones You Love

You can use the equity in your home to help others. For example, you could use the proceeds from a reverse mortgage to help a child or grandchild with major expenses, such as college tuition or a down payment on their first home.

Mortgage Forward offers only the most reliable and flexible reverse mortgage solutions, tailored to meet the individual needs of our clients. Our team of experienced professionals ensures a seamless and efficient process. Contact us now to explore the possibilities with reverse mortgage >>