1. All Reverse Mortgages are either insured by FHA or are non-government insured loans. Non-government insured loans are referred to as Jumbo or Conventional programs. Government-insured loans are referred to as Home Equity Conversion Mortgage or HECM loans. Both HECM and Jumbo products share a set of common characteristics, which include the following:

2. You must be at least 62 years old and own a home. (Note: There is a Jumbo reverse mortgages that is available for borrowers at least 60 years of age.)

3. You always retain title (ownership) to the home. The lender never, at any point, owns the home, even after you (or last surviving spouse) permanently vacate the property.

4. You must still pay property taxes and insurance, and keep the home well maintained. If you are unable to pay your property taxes and insurance, then a special set-aside from your reverse mortgage can be created.

5. Repayment of the loan occurs when you (or last surviving spouse) permanently vacate the home. You or your heirs (estate) then must payoff the loan using by refinancing or selling the home. Any excess funds after the loan is retired go to you or your estate.

6. The amount of eligible funds are calculated based on the age of the youngest borrower, the value of the home, the interest rate and the upfront costs. With the HECM product, the FHA maximum limit for your area is a factor. With all products, the older you are, the more proceeds you are eligible to receive.

7. Closing costs can be financed, or paid out of the available loan proceeds. In most cases, the only cash required is to pay for the appraisal, which normally costs $350- $450.

8. The loan balance is a combination of (1) any financed closing cost plus (2) any funds advanced at closing to payoff existing mortgages or cash plus (3) any funds you access from your line of credit plus (4) all monthly payment sent to you. In addition, the lender is charging you interest on the outstanding loan balance as well as a monthly servicing fee.

9. Repayment of the loan is not required until you (or the last surviving spouse) permanently leave the home as a primary residence. For the HECM program, you can live up to 12 consecutive months outside the home, but this may vary for other products.

10. All reverse mortgages have a "non-recourse" feature, which means that the total amount owed can never exceed the appraised value of the home. In other words you have no personal liability for repayment of the loan balance beyond the value of your property.  If the amount owed exceeds the home's appraised value, then the lender or the federal government (in the case of the HECM product) will absorb that loss.