You keep the title
A reverse mortgage is a loan secured by your home, like any mortgage. The lender does not own your house. You do, the whole time.
The flip side · For homeowners 62+
A reverse mortgage is one of the most misunderstood tools in retirement — mostly because the people explaining it are either selling it or scared of it. Scott does both sides of the business, forward and reverse, so you get the honest version: what it is, what it is not, and whether it fits.
HECM · HECM for PurchaseForward & reverse, one lenderNo forms. Nothing collected.
Scott · Fairway Reverse
forward and reverse
dad is 71, house is paid off, and he's tight every month. is a reverse mortgage a terrible idea?
Not terrible — just misunderstood. He keeps the house. No monthly mortgage payment. He keeps paying taxes and insurance. The real question is how long he plans to stay. 20 minutes and I'll tell you both honestly. ⇄
he's not going anywhere. ever. 😂
Then it's worth a real look. First step is a free counseling session with a HUD-approved counselor — not me. I like that rule. 👍
62+Minimum age for a HECM borrower
TitleStays in your name — you own the home
$0Monthly mortgage payment required*
FHAHECMs are insured by the Federal Housing Administration
HUDIndependent counseling is required before you apply
* No monthly principal and interest payment is required, but you must keep paying property taxes, homeowners insurance and any HOA dues, and maintain the home. Interest accrues and the balance grows over time.
What it actually is
A Home Equity Conversion Mortgage (HECM) is an FHA-insured loan for homeowners 62 and older that turns part of the equity in your home into money you can use now — without a required monthly mortgage payment and without giving up ownership. The loan is repaid when the last borrower sells, moves out for good, or passes away, usually from the sale of the home.
No monthly mortgage payment is required
You can make payments if you want to, but you do not have to. Interest and fees are added to the balance instead, so the balance grows over time and your equity shrinks.
You keep paying what every owner pays
Property taxes, homeowners insurance, HOA dues, upkeep. Falling behind on those is the one way a reverse mortgage becomes due early — so Scott talks about it on day one, not at closing.
It is non-recourse
HECMs are FHA-insured. If the home sells for less than the balance when the loan comes due, FHA insurance covers the difference. Neither you nor your heirs owe more than the home is worth when it is sold to repay the loan.
Four ways people use it
Retire the mortgage you have
The most common use. The reverse mortgage pays off your current loan first, which eliminates the monthly principal-and-interest payment. Whatever is left is yours to take as a lump sum, a line of credit, monthly draws, or a mix.
A line of credit that grows
Take little or nothing now and leave the rest as a HECM line of credit. The unused portion grows over time, independent of your home's value, and it cannot be frozen or cancelled as long as you meet the loan terms — which is why some financial planners treat it as a retirement safety valve.
A monthly check
Set up "tenure" payments that continue for as long as you live in the home, or "term" payments for a set number of years. Useful for covering a gap between what retirement income brings in and what the month costs.
Buy your next home with it
HECM for Purchase (H4P) lets buyers 62+ purchase a home — closer to the grandkids, on one level, in a 55+ community — with a larger down payment and no required monthly mortgage payment afterward. One closing, one set of costs. Scott walks both sides of the deal.
Is it for you?
Scott does the forward side too, so there is no incentive to steer you here. These are the patterns that usually say yes — and the ones that usually say wait or no.
Scott · Loan Officerwe'd like to leave the house to our daughter someday. does that rule this out?
Not necessarily — she can keep it by paying off the balance (or 95% of value, whichever is less). But if the HOUSE itself is the priority, we should look at the other options first. Honest answer. 🏡
Often a good fit
- You are 62 or older and plan to stay in your home for years to come
- You have meaningful equity but a tighter month than you would like
- You want a line of credit in reserve so you are not selling investments in a down market
- You are buying a "last house" and would rather not take on a new monthly payment
- You want to age in place and fund the modifications or care that make it possible
Worth a harder look first
- You plan to move within a few years — upfront costs matter more on a short horizon
- Leaving the home itself (not its value) to heirs is the top priority
- Someone living with you is not on the loan and would need to stay after you — there are protections for eligible spouses, but it needs a real conversation
- You are behind on taxes or insurance and the plan is to catch up with loan proceeds — sometimes workable, sometimes not; honesty first
Six myths, busted
The bank takes the house, the kids inherit the debt, you can be thrown out — all of it comes from a different decade, a different product, or a bad mailer. Tap each one.
The bank takes your house.
The truth: No. You keep the title and you keep living there. The lender has a lien, exactly like a regular mortgage. The loan is repaid when the last borrower leaves the home for good — usually from the sale.
Your kids inherit the debt.
The truth: HECMs are non-recourse. Heirs can keep the home by paying off the balance or 95% of the appraised value, whichever is less, or they can sell it and keep whatever equity remains. They never owe more than the home is worth when it is sold to repay the loan.
You can be kicked out at any time.
The truth: As long as you live in the home as your primary residence and keep up with taxes, insurance, HOA dues and maintenance, the loan stays in place. Those obligations are the whole rulebook, and Scott goes through them before anyone signs anything.
It is only for people who are desperate.
The truth: Some of the most carefully planned retirements use a reverse mortgage line of credit as a buffer — so a bad market year does not force the sale of investments. It is a tool. Used well, it is a conservative one.
You cannot use it to buy a home.
The truth: HECM for Purchase has existed since 2009. Buyers 62+ bring a larger down payment, the reverse mortgage covers the rest, and there is no required monthly mortgage payment afterward.
Nobody independent checks whether it is a good idea.
The truth: Actually, someone does — by law. Every HECM borrower completes a session with a HUD-approved counselor who does not work for the lender, before the application can move forward.
How it works
HUD-approved counseling sits between the conversation and the application, by law. Scott thinks that is the best rule in mortgage lending.
What you keep doing, for the life of the loan
- Live in the home as your primary residence (an annual occupancy certification confirms this)
- Pay property taxes on time
- Keep homeowners insurance in force (and flood insurance where required)
- Pay HOA or condo dues if the property has them
- Maintain the home in reasonable condition
1
A conversation
Text or call Scott. Your goals, your home, your month. He will tell you honestly whether a reverse mortgage is worth a closer look — and if a forward refinance, a HELOC, or doing nothing is the better move, you will hear that instead.
2
Independent counseling
A session with a HUD-approved counselor who does not work for Fairway. Required by law, usually about an hour, by phone or in person. You receive a certificate that lets the application proceed.
3
Application and financial assessment
Income, credit history, and your record of paying taxes and insurance are reviewed — not to see if you can afford a payment (there isn't one) but to confirm you can keep up with the obligations that keep the loan in good standing.
4
Appraisal
An FHA appraiser values the home. Proceeds are based on the youngest borrower's age, the appraised value (up to program limits), and current interest rates.
5
Underwriting and closing
Fairway's dedicated reverse underwriting team reviews the file. You sign, and on a refinance you have a three-business-day right to change your mind before any money moves.
6
Living with it
Keep paying taxes, insurance and HOA dues, keep the home up, and live there. Each year you confirm occupancy. That is the ongoing job — Scott stays a text away for the rest.
Your point of contact
Most reverse mortgage conversations happen with a specialist who only sells reverse mortgages. Scott Synovic has been in mortgage lending since 2003, originates conventional, FHA, VA, USDA and jumbo loans every week — and originates reverse mortgages through Fairway Reverse, Fairway's dedicated reverse division with its own underwriting, processing and support teams.
So when he says a reverse mortgage fits, it is because it beat the refinance, the HELOC and doing nothing on your numbers — not because it was the only thing on the shelf. And when it does not fit, you will hear that first.
10Scott · Loan Officer
Over 62 and need to tap equity: reverse mortgage, cash-out refinance or HELOC?
Three ways to turn home equity into money, compared honestly by someone who originates all three.
5 min read →Scott · Loan Officercan we do this to buy the one-level house near our son in Castle Rock?
That's HECM for Purchase — yes. Bigger down payment from the sale of your current place, no monthly mortgage payment after. One closing. Send me the listing. 🏡
Straight answers
What is a reverse mortgage?
A reverse mortgage is a loan for homeowners 62 and older that converts part of the equity in a home into cash — as a lump sum, a line of credit, monthly payments, or a combination — with no required monthly mortgage payment. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration. The borrower keeps the title, must continue to pay property taxes, insurance and HOA dues and maintain the home, and the loan is repaid when the last borrower sells, moves out permanently or passes away.
Who qualifies for a reverse mortgage in Colorado?
For a HECM: at least one borrower must be 62 or older, the home must be the borrower's primary residence, there must be enough equity (an existing mortgage is paid off with the proceeds), the property must be an eligible type, and the borrower must pass a financial assessment showing they can keep up with taxes, insurance and maintenance. HUD-approved counseling is required before applying. Scott Synovic originates reverse mortgages through Fairway Reverse for homeowners across Colorado.
Do I still own my home with a reverse mortgage?
Yes. Title stays in your name. The lender holds a lien, as with any mortgage. You can sell the home at any time and keep any equity above the loan balance.
What happens to my heirs?
When the last borrower passes away or leaves the home, the loan becomes due. Heirs can keep the home by paying the balance or 95% of the current appraised value (whichever is less), sell it and keep any remaining equity, or let the lender take the home. Because HECMs are non-recourse and FHA-insured, heirs never owe more than the home is worth when it is sold to repay the loan.
What do I still have to pay?
Property taxes, homeowners insurance, any HOA or condo dues, and upkeep of the home. You must also live in the home as your primary residence. Falling behind on these obligations can make the loan due and payable. There is no required monthly principal-and-interest payment, although you may make payments voluntarily.
Is reverse mortgage money taxable?
Reverse mortgage proceeds are loan advances, not income, so they are generally not taxable — but this is not tax advice. Consult a tax advisor, and talk with a financial advisor about any effect on needs-based benefits such as Medicaid or SSI; Social Security and Medicare are not affected.
Can I buy a home with a reverse mortgage?
Yes. HECM for Purchase (H4P) lets buyers 62 and older purchase a primary residence with a larger down payment (typically a sizable percentage of the price, which depends on age and rates) and no required monthly mortgage payment afterward. It is common for downsizing, moving closer to family, or buying a single-level home.
How much can I get from a reverse mortgage?
It depends on the age of the youngest borrower, the home's appraised value (up to the HECM lending limit), and current interest rates — older borrowers and lower rates generally mean more available. Any existing mortgage is paid off first. Scott runs the actual numbers for your home at no cost and no obligation.
Is counseling really required?
Yes. Every HECM applicant must complete a session with an independent, HUD-approved housing counselor before the lender can process the application. It typically takes about an hour and can be done by phone. It is one of the strongest consumer protections in the mortgage world, and Scott recommends it even to people who end up deciding against a reverse mortgage.
Why ask Scott about a reverse mortgage?
Scott Synovic is a Fairway Home Mortgage loan officer in Monument, CO (NMLS #253799) who originates both traditional and reverse mortgages and is listed on fairwayreverse.com, Fairway's dedicated reverse mortgage division. That means you get a comparison across every option — a reverse mortgage, a forward refinance, a HELOC, or waiting — from one person, with no pressure toward any of them.
Reverse mortgage disclosures: A reverse mortgage is a loan that must be repaid. Borrowers must be 62 or older (for a Home Equity Conversion Mortgage, or HECM), live in the home as their primary residence, and continue to pay property taxes, homeowners insurance, and any HOA dues, and maintain the home; failing to meet these obligations can result in the loan becoming due and payable and may lead to foreclosure. Interest and fees are added to the loan balance each month, so the balance grows over time and home equity decreases. The loan becomes due when the last borrower (or eligible non-borrowing spouse) no longer lives in the home as a primary residence, sells the home, or passes away. HECM loans are insured by the Federal Housing Administration (FHA) and are non-recourse: neither the borrower nor the heirs will owe more than the home is worth when the loan is repaid, as long as the home is sold to repay the loan. Borrowers must complete counseling with a HUD-approved independent counselor before applying. Proceeds are generally not considered taxable income, but this is not tax advice; consult a tax advisor, and consult a financial advisor about any effect on needs-based benefits such as Medicaid or SSI. This material is not from HUD or FHA and has not been approved by HUD or any government agency. Not all borrowers will qualify; proceeds depend on the age of the youngest borrower, the home's value, current interest rates and program limits.
Fairway Independent Mortgage Corporation is not affiliated with any government agency. These materials are not from, and were not approved by, HUD, FHA, VA, USDA, the Colorado Housing and Finance Authority (CHFA) or any other government agency. Educational content only; not financial, tax or legal advice. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.
Ready when you are
A question, a parent's situation, a mailer you want decoded — text it over. If a reverse mortgage is the wrong tool, you will hear that first, and you will still get the right one explained.
Text Scott · 303-668-3350 →Call 303-668-3350
scott.synovic@fairwaymc.com · Fairway Home Mortgage — Monument, CO, 1832 Woodmoor Drive, Suite 106, Monument, CO 80132. Applications happen on Fairway's secure site — never here.