Reverse Mortgage in Penn Estates, PA

A Home Equity Conversion Mortgage, or HECM, is the reverse mortgage insured by the Federal Housing Administration, and the youngest borrower must be at least 62. Before you can apply, you must meet with a HUD-approved housing counselor. This page explains payout choices, repayment, what happens for heirs and spouses, and the responsibilities Penn Estates and Pennsylvania homeowners keep for as long as the loan is open.

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Call to speak with a licensed loan officer about reverse mortgage in Penn Estates. Programs vary by borrower, property and investor.

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Older homeowners in Penn Estates

14%Owner households 65+

26%Homes with no mortgage

$283,100Median home value

12Reverse mortgages in Monroe County (2024)

In Penn Estates, 14% of owner-occupied homes are headed by someone 65 or older, and 26% of owner-occupied homes have no mortgage. Lenders reported 12 reverse mortgages in Monroe County in 2024.

How a HECM reverse mortgage works

A reverse mortgage converts part of your equity into funds you can use, while the debt is repaid later from the home itself. Because interest and mortgage insurance accrue on the balance, the amount owed grows over time and the equity left for you or your heirs shrinks.

The HECM program is insured by the Federal Housing Administration, and the youngest borrower must be 62 or older. The home must be your primary residence and meet FHA property standards. Any existing mortgage is typically paid off from the loan proceeds at closing. Whether a reverse mortgage fits depends on your health, plans, other income and goals for the house, so it deserves careful thought.

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Prefer to talk first? Call (888) 912-6746. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Counseling first, then payout choices

HUD requires every HECM borrower, and in many cases a non-borrowing spouse, to complete a session with an independent HUD-approved housing counselor before applying. The counselor explains costs, alternatives such as downsizing or a home equity loan, and how the loan could affect your estate and public benefits. You receive a certificate when you finish.

Once you move forward, you choose how to receive funds. Options can include a lump sum, fixed monthly advances for as long as you live in the home, monthly advances for a set period, a line of credit or a mix. Availability depends on the loan structure, and some choices limit how much you can draw in the first year.

Who this tends to fit

The youngest borrower on title is 62 or older and plans to stay in the home long term
You have discussed the impact on your estate with your heirs or family
You want to pay off an existing mortgage to remove a required monthly principal and interest payment
You would like a line of credit available for future expenses such as home modifications or care at home
You can comfortably keep paying property taxes, homeowners insurance and maintenance

Local offices and Pennsylvania rules to know

Property assessment: Monroe County Assessment Office.

Pennsylvania property tax relief: Under the Taxpayer Relief Act, owner-occupied primary residences (and qualifying farmsteads) can receive a homestead/farmstead exclusion that lowers school property taxes; homeowners apply through their county assessment office.

Your ongoing duties and what happens to the home in Penn Estates

A reverse mortgage does not relieve you of homeownership costs. You must keep paying property taxes, homeowners insurance and any flood insurance or association dues, and you must maintain the home in reasonable repair. Falling behind on these obligations can put the loan into default and may lead to foreclosure. Lenders review your finances during the application to judge whether you can keep up, and some borrowers are required to set aside funds for taxes and insurance.

When the loan comes due, the home is usually sold to repay it, or heirs may pay it off and keep the property. HECMs are non-recourse loans, so the amount owed generally cannot exceed the home's value at the time it is sold.

Before you call

The current balance and statement for any existing mortgage or lien on the home
Questions about heirs, estate plans and any public benefits you receive
Notes on how you would prefer to receive funds: line of credit, monthly advances, lump sum or a mix
Recent property tax bills and your homeowners and flood insurance declarations
Dates of birth for every owner and for any spouse who will live in the home

Questions Penn Estates borrowers ask about reverse mortgage

Who can get a HECM reverse mortgage?

The youngest borrower must be 62 or older, the home must be your primary residence and you need substantial equity. The property must meet FHA standards, and eligible types include single-family homes, some two-to-four unit homes you live in, and certain condominiums and manufactured homes. You must also complete HUD-approved counseling and show you can keep paying property taxes, insurance and upkeep. Approval is subject to the lender's review.

Is reverse mortgage money mine to keep without repaying it?

No. A reverse mortgage is a loan. Interest, mortgage insurance and fees are added to the balance over time, so the amount you owe grows and the equity left in your home shrinks. The loan must be repaid when it comes due, usually through the sale of the home. It can be a useful tool for some homeowners, but it uses up equity that might otherwise go to you later or to your heirs.

Can I use a reverse mortgage to buy a home?

Yes. A HECM for Purchase lets borrowers aged 62 or older buy a new primary residence and finance part of the price with a reverse mortgage, paying the rest from savings or the sale of a prior home. This can help when downsizing or moving closer to family without taking on a required monthly principal and interest payment. The same counseling, occupancy and ongoing cost obligations apply.

Why is HUD-approved counseling required?

A reverse mortgage is a complex decision with long-term effects on your finances and estate. HUD requires a session with an independent, HUD-approved counselor before you apply so you understand how the loan works, what it costs, how the balance grows and what alternatives exist. The counselor does not work for the lender. You will receive a certificate showing you completed counseling, which the lender needs before moving forward.

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Get answers about reverse mortgage for a home in or around Penn Estates. Subject to credit approval; programs vary.