Reverse Mortgages
Access the equity in your home without monthly mortgage payments. The FHA-insured HECM program helps Miami homeowners 62 and older turn their home's value into financial flexibility.
What Is a Reverse Mortgage?
A reverse mortgage — formally known as a Home Equity Conversion Mortgage (HECM) — is an FHA-insured loan that allows homeowners aged 62 and older to convert a portion of their home equity into cash. Unlike a traditional mortgage, you don't make monthly mortgage payments. Instead, the loan is repaid when you sell the home, move out, or pass away.
HECMs are the only reverse mortgages insured by the federal government through HUD and FHA. This insurance protects you as the borrower — you'll never owe more than the home is worth, regardless of how long you live in the property or what happens to home values.
Who Qualifies?
HECM eligibility is based on age, property type, and financial capability:
- Age 62 or older: At least one borrower must be 62+. The older you are and the more equity you have, the more funds you can access.
- Primary residence: The home must be your primary residence. Single-family homes, FHA-approved condos, and 2–4 unit properties (where you occupy one unit) are eligible.
- Sufficient equity: You need to own your home outright or have a low remaining mortgage balance that can be paid off with the reverse mortgage proceeds.
- Ongoing obligations: You must continue paying property taxes, homeowner's insurance, and maintain the home in good condition.
How It Works
A reverse mortgage flips the traditional mortgage model. Instead of you paying the lender each month, the lender pays you — or makes funds available for you to draw on as needed.
- No monthly mortgage payments: You are not required to make monthly principal or interest payments. The loan balance grows over time as interest accrues.
- Loan repayment: The loan becomes due when the last borrower sells the home, permanently moves out, or passes away.
- Flexible disbursement: Choose how you receive your funds — as a lump sum, a line of credit you can draw on when needed, fixed monthly payments, or a combination of these options.
- You stay in your home: As long as you meet the loan obligations (taxes, insurance, maintenance), you can live in the home for as long as you want.
Common Myths — Debunked
“The bank takes your house.”
This is the most common misconception. With a reverse mortgage, you retain full ownership and title to your home. The lender has a lien — just like any traditional mortgage — but the home is yours. You can sell it, leave it to your heirs, or continue living in it.
“My heirs will be stuck with the debt.”
HECM loans are non-recourse, which means your heirs will never owe more than the home is worth. When the loan comes due, heirs can sell the home and keep any remaining equity. If the home is worth less than the loan balance, FHA insurance covers the difference — not your family.
“I'll lose my home if values drop.”
Because HECMs are FHA-insured, you're protected even if your home's value declines below the loan balance. You can never be forced out of your home due to market conditions as long as you meet the loan's obligations.
“Only desperate people get reverse mortgages.”
Many financially savvy retirees use reverse mortgages as part of a broader retirement strategy — to eliminate monthly mortgage payments, create a line of credit that grows over time, or delay drawing on Social Security and investment accounts.
HUD Counseling Requirement
Before closing on a reverse mortgage, HUD requires that you complete a counseling session with a HUD-approved counselor. This is a consumer protection measure designed to ensure you fully understand how the loan works, your obligations, and your alternatives.
The counseling can be done by phone or in person and typically takes about an hour. The counselor is independent — they don't work for the lender and their goal is to make sure the reverse mortgage is right for your situation.
Abel Medero can connect you with approved HUD counselors and walk you through what to expect before your session.
Explore Your Reverse Mortgage Options
A reverse mortgage is a significant decision. Let's talk through the numbers, the process, and whether it makes sense for your situation — no pressure, no sales pitch.
Abel Medero, NMLS #1010813. VMA Lending, LLC, NMLS #2734596. Licensed mortgage broker, State of Florida. This is not a commitment to lend. All loan programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice. Not all applicants will qualify. Reverse mortgage borrowers must maintain the home as their primary residence and remain current on property taxes, homeowner's insurance, and HOA fees. The loan becomes due when the last borrower sells, permanently moves out, or passes away. HUD counseling is required prior to closing. Equal Housing Opportunity.