REVERSE MORTGAGE GUIDE
Understanding Reverse Mortgages for Oregon & Washington Homeowners
If you’re like many homeowners throughout Oregon and Washington, your home may be your largest financial asset. After years of making mortgage payments and watching your home’s value grow, you’ve built equity that could play an important role in your retirement plan.
A reverse mortgage is a specialized home loan that allows eligible homeowners age 62 and older to convert a portion of their home’s equity into accessible funds while continuing to own and live in their home.
Unlike a traditional mortgage, a reverse mortgage does not require monthly principal and interest payments as long as you continue to occupy the home as your primary residence and meet the loan obligations, including paying property taxes, maintaining homeowners insurance, and keeping the home in good condition.
For many retirees, a reverse mortgage provides greater financial flexibility without requiring them to sell the home they’ve worked so hard to own.
At Platinum Lending Solutions, we believe education comes before applications. Our goal is to help homeowners throughout Oregon and Washington understand every option available so they can make confident, informed decisions about their retirement.
Education Before Applications
Understand how reverse mortgages work, what responsibilities remain, and which options may be worth considering before making a decision.
How Does a Reverse Mortgage Work?
A reverse mortgage allows you to borrow against a portion of your home’s equity.
Instead of making monthly principal and interest payments to a lender, the loan balance increases over time as interest accrues. The loan generally becomes due when the last borrower permanently moves out of the home, sells the property, or passes away.
You remain the homeowner throughout the life of the loan and continue to hold title to your property.
Many Homeowners Use Reverse Mortgage Proceeds To:
• Pay off an existing mortgage
• Increase monthly retirement cash flow
• Create a standby line of credit
• Cover healthcare or long-term care expenses
• Remodel or update their home
• Purchase a retirement home
• Supplement retirement income
• Preserve investment accounts during market downturns
Because every homeowner’s situation is different, the proceeds can be structured in several ways to support your individual financial goals.
How Can You Receive the Funds?
One of the advantages of a reverse mortgage is flexibility.
01
Lump-Sum Payment
02
Monthly Payments
03
Line of Credit
04
Combination of Options
For an adjustable-rate HECM, unused line-of-credit borrowing capacity may increase over time according to the loan terms, providing additional resources that may be available later in retirement.
What Types of Reverse Mortgages Are Available?
Home Equity Conversion Mortgage (HECM)
The Home Equity Conversion Mortgage, commonly called a HECM, is the most widely used reverse mortgage in the United States.
It is insured by the Federal Housing Administration (FHA) and is available to eligible homeowners age 62 and older.
HECM loans include important consumer protections, including:
• Mandatory HUD-approved counseling
• Non-recourse protection
• Flexible payment options
• Federally regulated guidelines
For many homeowners, a HECM may provide a useful combination of flexibility and federally established consumer protections.
Proprietary (Jumbo) Reverse Mortgages
Some homeowners throughout Oregon and Washington own homes whose values exceed FHA lending limits.
In these situations, a proprietary reverse mortgage—sometimes called a jumbo reverse mortgage—may provide access to additional equity.
These privately funded programs may offer:
• Higher loan amounts
• Greater flexibility
• Financing for high-value homes
• No FHA mortgage insurance premium
As an independent mortgage broker, Platinum Lending Solutions compares multiple proprietary reverse mortgage programs to help you find the option that fits your goals.
Single-Purpose Reverse Mortgages
Some government agencies and nonprofit organizations offer limited-purpose reverse mortgage programs for specific expenses such as home repairs or property taxes.
These programs are relatively uncommon and often have income or geographic restrictions.
Do You Still Own Your Home?
Yes.
This is one of the biggest misconceptions about reverse mortgages.
A reverse mortgage does not transfer ownership of your home to the lender.
You remain the owner.
Your name stays on the title.
You may sell your home at any time.
Like Any Homeowner With a Mortgage, You Remain Responsible For:
• Paying property taxes
• Maintaining homeowners insurance
• Keeping the home in good repair
• Living in the home as your primary residence
Who Qualifies for a Reverse Mortgage?
While eligibility varies by program, most HECM borrowers must:
• Be at least 62 years old
• Live in the home as their primary residence
• Have sufficient home equity
• Meet FHA financial assessment requirements
• Complete independent HUD-approved counseling
Some proprietary reverse mortgage programs have different qualification guidelines.
We’ll help you determine which options are available based on your unique situation.
Why Homeowners in Oregon & Washington Consider Reverse Mortgages
Many homeowners throughout Oregon and Washington purchased their homes years ago and have benefited from substantial appreciation in home values.
Whether you own a home in the Portland metro area, Central Oregon, Southwest Washington, the Puget Sound region, or a smaller community, you may have built significant equity that could help support your retirement goals.
Homeowners often choose reverse mortgages to:
• Eliminate an existing mortgage payment
• Improve monthly cash flow
• Stay in the home they love
• Delay withdrawals from retirement accounts
• Prepare for future healthcare expenses
• Purchase a home better suited for retirement
For many retirees, a reverse mortgage isn’t about borrowing because they’re struggling—it’s about using an existing asset more strategically.
Is a Reverse Mortgage Safe?
Today’s reverse mortgages include significantly more consumer protections than many people realize.
Before a HECM loan can close, borrowers must complete an independent counseling session with a HUD-approved counselor. This ensures homeowners understand how the loan works, their responsibilities, and available alternatives.
Important HECM Protection
HECM reverse mortgages include non-recourse protection under applicable program rules, which generally means the borrower or estate will not owe more than the home’s value when the loan becomes due.
These safeguards help protect both borrowers and their families.
Common Questions
Will I lose my home?
No. As long as you continue meeting the loan obligations, you remain the homeowner.
Are reverse mortgage proceeds taxable?
Generally, no. Reverse mortgage proceeds are loan advances rather than taxable income. You should consult your tax advisor regarding your individual circumstances.
Can I sell my home later?
Yes. You may sell your home whenever you choose. The reverse mortgage is simply repaid from the sale proceeds.
Can I leave my home to my children?
Yes. Your heirs may choose to sell the property, refinance the balance, or keep the home if they satisfy the loan according to program guidelines.
Ready to Explore Your Options?
Every homeowner’s financial situation is different, and there is no one-size-fits-all solution.
At Platinum Lending Solutions, we take a consultative approach. We’ll explain how reverse mortgages work, compare both FHA and proprietary programs, answer your questions honestly, and help you determine whether a reverse mortgage fits your retirement goals.
If you’re considering a reverse mortgage for a home in Oregon or Washington, we’d be honored to help.
