Understanding Reverse Mortgage Schemes
                     HeroFin Corp
UNDERSTANDING 
REVERSE 
MORTGAGE 
SCHEMES
www.herofincorp.com
WHAT IS A REVERSE 
MORTGAGE SCHEME?
A reverse mortgage is a loan that 
allows homeowners over 62 years 
of age to borrow money against 
the equity in their homes, without 
having to make monthly mortgage 
payments.
A reverse mortgage is a loan that 
allows homeowners over 62 years 
of age to borrow money against 
the equity in their homes, without 
having to make monthly mortgage 
payments.
HOW DOES A REVERSE 
MORTGAGE SCHEME WORK?
The lender pays the homeowner in 
a lump sum, a line of credit, or 
monthly payments.
The loan balance increases over 
time as interest and fees are added 
to the loan.
When the homeowner dies or sells 
the home, the loan must be repaid, 
usually from the sale proceeds of 
the home.
TYPES OF REVERSE 
MORTGAGE SCHEMES
The Home Equity Conversion 
Mortgage (HECM) is the most 
popular reverse mortgage 
program, insured by the Federal 
Housing Administration (FHA).
The HECM Standard loan allows 
homeowners to access more equity 
but requires upfront fees.
ADVANTAGES OF A REVERSE 
MORTGAGE SCHEME
Provides a steady source of income 
in retirement without the need to 
sell the home or move.
Allows for flexibility in how the 
funds are received (lump sum, line 
of credit, monthly payments).
No monthly mortgage payments 
are required during the loan term.
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