By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 18, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: A reverse mortgage is a loan against your home that pays you instead of you paying the lender. Interest and mortgage insurance are added to the balance each month, so the balance grows over time while your equity typically shrinks. You don’t repay it until the last borrower sells, moves out for good, or passes away. You must keep paying taxes, insurance and upkeep.
The youngest borrower must be 62+ for a HECM. The home must be your primary residence, with enough equity. Eligible types include single-family homes, 2–4 units you occupy, FHA-approved condos and some manufactured homes.
A HUD-approved counselor explains costs, alternatives and obligations, and gives you a certificate you need to apply. See HECM counseling.
The lender orders an FHA appraisal and reviews your income, credit and property-charge history. If there are concerns, part of the proceeds may be set aside (a Life Expectancy Set-Aside) to pay future taxes and insurance.
The amount available depends on the youngest borrower’s age, the expected interest rate, and the lesser of the home’s value or the HECM limit set by HUD. Any existing mortgage is paid off first.
Lump sum, tenure, term, line of credit or a combination. On a refinance of your primary home, you have a three-day right to cancel after closing.
You get statements showing the growing balance. Keep paying taxes, insurance and HOA dues, maintain the home, and certify occupancy every year.
When the loan comes due, you or your heirs sell the home, refinance, or pay it off. Thanks to non-recourse protection, you never owe more than the home is worth. See heirs and inheritance.
Yes. Interest and mortgage insurance accrue, so the balance increases over time unless you make voluntary payments.
Yes, without a prepayment penalty on HECMs.
If you’re away from the home for more than 12 consecutive months for medical reasons, the loan can come due unless a co-borrower still lives there.
Talk to Steven: (858) 775-1005 · Free consultation · Apply now
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.