How does a reverse mortgage work?

Reverse mortgage for purchase.

our team.

Our Team


Brenda Houglum

Reverse Mortgage Specialist
Cell Phone – (218) 790-0954
Fax – (701) 540-0428
Email –
NMLS # – 400861


Sharon Johnson

Reverse Mortgage Specialist
Cell Phone – (701) 793-2755
Fax – (701) 540-0424
Email –
NMLS # – 402088

Quick Facts/FAQ

–       HECM Standard

–       HECM for Purchase

–       62 years of age or older

–       Property used as collateral must be primary residence

–       No delinquencies on any federal debt, suspensions, debarments or excluded participation from FHA programs

–       Completion of HECM counseling

–       Occupy the home as a principle residence

–       Make timely property tax payments

–       Maintain homeowners insurance

–       Maintain the property

–       No. A reverse mortgage will NOT influence your social security or your Medicare benefits.

–       Yes. The title and the home is yours until you decide to sell.

–       Reverse mortgage lenders recover the loan amount, plus interest when the home is sold (because owners choose to move, or pass away)

–       When the loan is paid in full, all equity associated with the property will be distributed to your heirs

A reverse mortgage is a borrowing option available to homeowners age 62 and up that allows

you to use the equity in your home for cash to cover a variety of expenses. With a reverse mortgage,

instead of making monthly payments*, the loan balance is repaid in one lump sum once you sell or

permanently leave your home.


*Borrowers are still responsible for paying taxes, insurance, HOA dues and property maintenance.

You continue to own and live in your home and remain responsible for payment of property taxes,

homeowners insurance and keeping the home maintained.

With a reverse mortgage, you do not have to make monthly payments* and you do not need to

pay back the loan until you sell or permanently leave your home. Although there are no monthly

mortgage payments, interest and FHA insurance premiums are added to the loan balance every

month during the life of the loan. A home equity loan or line of credit requires you to make monthly

payments of interest and some require principal and interest payments.


*Borrowers are still responsible for paying taxes, insurance, HOA dues and property maintenance.

The amount you can borrow depends on several factors including your age, the home’s

appraised value and current interest rates, among others. Talk to a Reverse Mortgage Specialist at

Homeowners Financial Group to learn more.

Most reverse mortgages have standard upfront fees, mortgage closing costs and an initial FHA

mortgage insurance premium. Most of these can be added to the amount borrowed. They are

repaid, along with accrued interest, when the loan becomes due.

Contact us for more information

Brenda Houglum: (218) 790-0954
Sharon Johnson: (701) 793-2755