Reverse Mortgage Dislcaimer

A reverse mortgage allows homeowners to borrow money using their home as security for the loan.

The most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM), the only reverse mortgage insured by the U.S. Federal Government through Federal Housing Administration (FHA)-approved lenders. The material here is intended to provide general information about HECM Reverse Mortgages. The information on this page does not include all requirements nor address all products and services available. Southern Trust Mortgage is not a financial, investment, or tax advisor and we do not provide legal or financial advice. Borrowers are encouraged to discuss their specific requirements with an independent financial and/or tax adviser.

Important Details

The youngest borrower must be at least 62 years old.
The home must be the primary residence.
The loan must be repaid when the home is no longer the primary residence.
Homeowners must complete counseling with a government-certified counselor before applying for a reverse mortgage.
Loan amounts are based on the equity in the home.
The lender will charge an origination fee, a mortgage insurance premium, closing costs and/or servicing fees, which will be added to the loan balance.
Payouts are available in a lump-sum distribution or regular scheduled payments.
No monthly mortgage payment is required but homeowners must pay property taxes, hazard, flood and other required insurance, HOA dues (if any), and costs to maintain the property to FHA standards.
Loans are subject to property qualification and determination borrowers can pay the taxes, insurance, and property maintenance.
- Lenders do not establish an escrow account for taxes, insurance, or other recurring costs.
- A set-aside account may be required based on financial assessment.
A reverse mortgage is a loan and must be repaid.
- At the maturity of a reverse mortgage, the lender will have a claim against the property and the homeowner, or their heir(s) may need to sell the property to repay the loan or repay the loan from other assets in order to retain the property.
- Failure to pay these amounts may cause the loan to become due and may be subject to tax liens, other encumbrances, and/or foreclosure.
The balance of the mortgage loan grows over time as interest is added to the loan balance.
Not all interest on a reverse mortgage is deductible from income tax and any potential deduction is not available until the borrower repays all or part of the loan.
You retain title to the property as long as you comply with the loan terms to live in the home as your principal residence, pay the taxes, insurance, and maintenance, or sell or transfer the property.

This material is not from HUD or FHA and was not reviewed, approved, or issued by HUD, FHA, or any government agency. Southern Trust Mortgage is not affiliated with, endorsed by, or acting on behalf of or at the direction of HUD, FHA, or any government agency. This information does not constitute an application and is not a commitment to make a loan. Prospective borrowers should not rely on this material to make their decision to apply, or not apply, for a reverse mortgage loan.

Before obtaining a reverse mortgage, borrowers should consult a trusted financial adviser or planner. There are government agencies and nonprofit organizations that provide information about reverse mortgage. Borrowers can locate resources at:

We offer reverse mortgages in the following states: District of Columbia, Delaware, Maryland, Pennsylvania, South Carolina, Tennessee, West Virginia, Virginia, and Florida