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Reverse Mortgage Options Des Moines | HECM Expert Guidance
SRES® Certified Senior Specialist

Reverse Mortgage: Is It Right for You?

A HECM reverse mortgage can be a powerful tool—or a costly mistake. As an SRES® certified agent, I help seniors understand their options with honest, unbiased guidance. No sales pressure, just education.

⚠️ Important: I am not a lender. I provide educational guidance and connect you with HUD-approved counselors and reputable lenders. All financial decisions should involve your family and financial advisor.

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Educational guide • No obligation • No sales pressure

HECM Basics

What Is a Reverse Mortgage?

A Home Equity Conversion Mortgage (HECM) is an FHA-insured loan that allows homeowners 62 and older to convert part of their home equity into cash—without selling or making monthly mortgage payments.

  • You Keep Your HomeContinue living in your home as long as you meet loan requirements
  • No Monthly PaymentsThe loan is repaid when you sell, move, or pass away
  • Multiple Payout OptionsLump sum, monthly payments, line of credit, or combination
  • FHA InsuredYou can never owe more than your home's value

How the HECM Process Works

  • 1

    HUD Counseling — Required session with approved counselor to ensure you understand the product

  • 2

    Application — Work with a lender to apply; financial assessment and property appraisal

  • 3

    Underwriting — Lender reviews all documentation and makes approval decision

  • 4

    Closing — Sign documents, 3-day rescission period, then funds are available

Eligibility

HECM Requirements

Not everyone qualifies for a reverse mortgage. Here are the basic requirements you'll need to meet.

Age 62 or Older

At least one borrower must be 62+. Older borrowers typically qualify for higher loan amounts.

Primary Residence

The home must be your primary residence. Vacation homes and investment properties don't qualify.

Sufficient Equity

You must own your home outright or have substantial equity. Most lenders require 50%+ equity.

HUD Counseling

Mandatory counseling session with a HUD-approved counselor before applying.

No Federal Debt

You cannot be delinquent on any federal debt, including taxes or student loans.

Property Standards

Home must meet FHA property standards. Some repairs may be required before closing.

Honest Assessment

Pros and Cons of Reverse Mortgages

A HECM can be the right choice for some seniors—and the wrong choice for others. Here's an honest look at both sides.

Potential Benefits

  • Stay in your home without monthly mortgage payments
  • Supplement retirement income or cover healthcare costs
  • Pay off existing mortgage and eliminate that payment
  • Non-recourse loan—never owe more than home's value
  • Flexible payout options to fit your needs
  • Line of credit grows over time if unused

Important Considerations

  • High upfront costs (origination fees, closing costs, MIP)
  • Loan balance grows over time due to accruing interest
  • Reduces inheritance for your heirs
  • Must maintain taxes, insurance, and property upkeep
  • Can complicate future living situations (nursing home)
  • May affect Medicaid eligibility
Other Options

Alternatives to Consider

A reverse mortgage isn't the only way to access your home equity or improve your financial situation. Here are other options worth exploring.

As your SRES® certified agent, I help you evaluate all options—not just the one that benefits me. Sometimes the best solution isn't a reverse mortgage at all.

Downsize Your Home

Sell your current home and buy something smaller. Unlock equity and reduce maintenance.

Home Equity Line (HELOC)

Borrow against equity with lower costs—but you'll have monthly payments.

Property Tax Deferral

Iowa offers property tax deferral for seniors. Postpone taxes until you sell.

Sell and Rent

Cash out 100% of your equity and rent. Eliminates maintenance and property taxes.

Family Arrangement

Some families create private loans or purchase arrangements. Requires careful planning.

Refinance

Traditional refinance may lower your payment or provide cash out at lower cost.

Required Step

HUD Counseling: Your Protection

Before you can apply for a HECM, you must complete counseling with a HUD-approved counselor. This isn't a sales pitch—it's consumer protection to ensure you fully understand the product.

The counselor will explain how reverse mortgages work, discuss alternatives, and review your specific financial situation. The session typically costs $125 and can be done by phone.

💡 Why This Matters

HUD counseling exists because reverse mortgages are complex. Unscrupulous lenders have taken advantage of seniors in the past. The counseling requirement helps ensure you're making an informed decision—not being pressured into something you don't understand.

What HUD Counseling Covers

  • How reverse mortgages work
  • Financial implications and costs
  • Alternatives to reverse mortgages
  • Impact on heirs and estate
  • Tax and benefit implications
  • Your ongoing obligations
  • Scam prevention education
Common Questions

Reverse Mortgage FAQ

What is a HECM reverse mortgage?

A Home Equity Conversion Mortgage (HECM) is an FHA-insured loan that allows homeowners 62+ to convert home equity into cash without selling. You receive funds while continuing to live in your home, and the loan is repaid when you sell, move, or pass away.

What are the requirements?

You must be 62 or older, own your home outright or have significant equity, live in the home as your primary residence, not be delinquent on federal debt, and complete HUD-approved counseling. The home must meet FHA property standards.

Can I lose my home?

You can remain in your home as long as you pay property taxes, homeowners insurance, and maintain the property. Default occurs only if you fail to meet these obligations. You can never owe more than your home's value due to FHA insurance.

What are the alternatives?

Alternatives include downsizing to a smaller home, home equity lines of credit (HELOC), property tax deferral programs for seniors, selling and renting, or family arrangements. I help clients evaluate all options to find the best fit.

Get Unbiased HECM Guidance

I'm not a lender—I don't make money whether you get a reverse mortgage or not. My job is to help you understand ALL your options so you can make the best decision for your situation.

What you get working with me:

  • Honest, unbiased education
  • HUD counselor connections
  • Reputable lender referrals
  • Alternative options analysis

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Educational consultation • No sales pressure