Delta Trust Credit Union – Reverse Mortgage Solutions

Finally, Peace of Mind

Enjoy the comfort of financial freedom in your retirement years.
A Reverse Mortgage from Delta Trust Credit Union can provide the extra cash you need — without giving up ownership of your home.

What is a Reverse Mortgage?

A reverse mortgage is a special type of home loan designed for senior homeowners. It allows you to convert part of your home’s equity into cash while continuing to live in your home.
The loan doesn’t need to be repaid until the last borrower permanently moves out or passes away. At that time, the estate typically has about six months to repay the balance or sell the home to settle the loan.
Any remaining equity belongs to the homeowner’s estate — and if the home sells for less than the loan balance, neither the borrower nor the estate is personally liable for the difference.

Eligibility (HECM – Home Equity Conversion Mortgage)

To qualify for an FHA-insured HECM Reverse Mortgage, you must:

  • Be 62 years of age or older

  • Own your home outright, or have a small remaining mortgage balance that can be paid off with the reverse mortgage proceeds

  • Live in the home as your primary residence

There are no income or credit score requirements, and all existing liens can be paid off at closing using reverse mortgage funds.

Eligible Home Types

Most property types qualify, including:

  • Single-family homes

  • Condominiums and townhomes (subject to FHA approval)

  • Certain manufactured homes (must be built within the last 30 years, on owned land, and meet FHA inspection standards)

Reverse Mortgage vs. Home Equity Loan

A reverse mortgage is different from a home equity loan or HELOC:

  • Traditional home loans require monthly repayments, income verification, and good credit.

  • With a reverse mortgage, you receive money from the lender — and no monthly payments are required as long as you live in the home.

The amount you can borrow depends on several factors, including:

  • Your age (older borrowers qualify for more)

  • The appraised value of your home

  • Current interest rates

  • FHA lending limits

You remain responsible for property taxes, homeowner’s insurance, and home maintenance.

You Can’t Outlive a Reverse Mortgage

As long as at least one borrower continues to live in the home and meets FHA obligations (keeping taxes and insurance current), the loan will never become due — even if you live to 100 and beyond.

Estate and Inheritance

When the last homeowner passes away or moves out permanently:

  • The estate may choose to repay the loan and keep the home, or sell it to settle the balance.

  • If the sale price is higher than the loan balance, the remaining equity goes to the estate.

  • If the home sells for less than the loan balance, the lender absorbs the loss — the estate and heirs owe nothing more.

  • Other assets, such as savings, investments, or vehicles, are never affected.

Loan Amount and Payout Options

The amount available depends on your age, interest rates, home value, and FHA limits. Funds can be received in several ways:

  • Lump Sum – one-time payment at closing

  • Tenure – equal monthly payments for as long as you live in the home

  • Term – equal monthly payments for a set number of years

  • Line of Credit – draw funds as needed until the limit is reached

  • Combination – customize your payout options

Start Your Reverse Mortgage Journey

A Delta Trust Credit Union Reverse Mortgage gives you financial confidence, flexibility, and the peace of mind you deserve.
✅ Stay in your home
✅ Access your equity tax-free
✅ Enjoy retirement with less financial stress

Contact our Mortgage Specialists today to learn how much you could qualify for and how we can help make your retirement years more secure.

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