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KNB Capital · Loan Programs
Reverse
Mortgage
Turn your home equity into tax-free income — with no monthly mortgage payment required. Designed for homeowners 62 and older.
Get My Free Quote Start ApplicationThe Basics
What Is A Reverse Mortgage?
A reverse mortgage — most commonly the FHA-insured Home Equity Conversion Mortgage (HECM) — allows homeowners 62 and older to convert a portion of their home equity into cash. Unlike a traditional mortgage, there is no required monthly payment. The loan is repaid when you sell the home, move out, or pass away.
You retain ownership of your home and can receive funds as a lump sum, monthly payments, a line of credit, or a combination. It's a powerful retirement planning tool when structured correctly — and KNB Capital will walk you through every option with full transparency.
Is It Right For You?
Reverse Mortgage Requirements
Age Requirement
All borrowers on title must be 62 or older. If a spouse is under 62, they may qualify as a non-borrowing spouse with specific protections.
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 all qualify.
Equity Position
You must have significant equity — typically owning your home outright or having a low remaining mortgage balance. Any existing mortgage is paid off with the reverse mortgage proceeds.
HUD Counseling
A mandatory HUD-approved counseling session is required before applying. This independent session ensures you fully understand the program — we'll connect you with a counselor.
Common Questions
What You Need To Know
Do I Still Own My Home?
Yes. You retain full ownership and title to your home. The reverse mortgage is simply a lien — just like a traditional mortgage. You must continue to pay property taxes, homeowner's insurance, and maintain the property.
What Happens When I Pass Away Or Move Out?
When the last borrower leaves the home, the loan becomes due. Your heirs have the option to sell the home, refinance into a new loan, or repay the balance to keep it. The loan can never exceed the home's value — it's FHA-insured.
Are The Proceeds Taxable?
Reverse mortgage proceeds are generally not considered taxable income by the IRS since they are loan advances, not earnings. We recommend consulting your tax advisor for your specific situation.
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