Lump Sum
Receive all available funds at closing. Available only on fixed-rate HECM loans. Best suited for borrowers who need to pay off an existing mortgage, cover major expenses, or want certainty about the total amount accessed.
Serving All of Alabama
Reverse Mortgage
in Alabama
If you or a loved one is 62 or older and owns a home in Alabama, a reverse mortgage may be one of the most important financial tools worth understanding — not because everyone should use one, but because everyone who qualifies deserves clear, honest information to make the right decision for their family.
No pressure — education first
HUD-approved counseling guidance
FHA-insured HECM programs
All of Alabama served
Jarrod Manley
Reverse Mortgage Advisor — Alabama
5-Star Rated
Understanding Reverse Mortgages
What Is a Reverse Mortgage — And Is It Right for Your Family?
A reverse mortgage is a federally insured loan — called a Home Equity Conversion Mortgage (HECM) — that allows homeowners 62 and older to access a portion of the equity in their home without selling it or making monthly mortgage payments. The loan balance grows over time as interest accrues, and it is repaid when the last borrower permanently leaves the home.
Reverse mortgages are not the right fit for everyone. They work best for seniors who plan to stay in their home long-term, have limited liquid savings but significant home equity, and want to improve their monthly cash flow or establish a financial safety net. The goal of this page — and any conversation you have with us — is to help you and your family understand the facts clearly enough to make your own informed decision.
Basic eligibility requirements:
Age 62 or older (at least one borrower)
Home must be your primary residence
Own home outright or have low remaining balance
Home must meet FHA property standards
Complete HUD-approved counseling session
Current on property taxes and insurance
How the Funds Work
How You Can Receive Your Funds
One of the most flexible aspects of a reverse mortgage is how you choose to access your equity. There is no single required format — most borrowers choose based on their financial goals and lifestyle.
Monthly Payments
Receive a consistent monthly payment for a defined term (term plan) or for as long as you live in the home (tenure plan). Many seniors use this to supplement Social Security, pension, or other retirement income.
Line of Credit
Draw from your available equity on your own schedule, in any amount, whenever you need it. The unused line of credit grows over time at the same rate as the loan's interest — meaning waiting to draw actually increases your available funds.
HECM for Purchase
Use a reverse mortgage to purchase a new primary residence — typically when downsizing, moving closer to family, or transitioning to a single-story home. A down payment is required, but there are no monthly mortgage payments on the new home.
Myths vs. Facts
What You May Have Heard — And What's Actually True
Reverse mortgages have a long history of being misunderstood. The program has changed significantly over the years, and many of the concerns that circulate in families are based on outdated information or misconceptions.
Common Myth
"The bank owns my home."
The Fact
You retain full title to your home throughout the life of the loan. The lender holds a lien — just like any other mortgage — but the home is yours.
Common Myth
"My heirs will be stuck with the debt."
The Fact
The loan is repaid from the home's proceeds when it is sold. FHA insurance covers any shortfall if the home's value falls below the loan balance — your heirs are never personally liable.
Common Myth
"I can't leave my home to my children."
The Fact
Your heirs can repay the loan balance (typically by selling the home or refinancing) and keep the property. The choice is theirs.
Common Myth
"I'll be forced to leave my home."
The Fact
As long as you pay property taxes and insurance, maintain the home, and continue living there as your primary residence, you cannot be forced to leave.
For Families
A Note for Adult Children and Family Members
It is common for adult children to be part of this conversation — and that is welcome. Here is what families usually want to know.
FHA Insurance Protects Everyone
Every HECM loan is federally insured through the FHA. This insurance guarantees that your parent will always be able to access their available funds, even if the lender were to fail — and that heirs will never owe more than the home is worth at the time of sale. This is a non-recourse loan.
HUD Counseling Is Required
Before any HECM loan can proceed, the borrower must complete a session with an independent, HUD-approved housing counselor. This counselor is not affiliated with the lender and is specifically there to make sure your parent understands all terms, alternatives, and implications. It is a built-in consumer protection.
Spouses and Heirs Are Protected
For eligible non-borrowing spouses, modern HECM rules include deferral period protections that allow a surviving spouse to remain in the home. Heirs inherit the right to repay the loan and keep the home — or allow it to be sold and keep any equity above the loan balance.
Jarrod welcomes family members to join consultations — whether by phone or video. The goal of every conversation is honest information, not a sales pitch. If a reverse mortgage is not the right fit, we will tell you that.
Ongoing Requirements
Your Ongoing Responsibilities as a Borrower
A reverse mortgage does not mean you are free from all home-related obligations. Three requirements must be maintained throughout the life of the loan.
Property Taxes
You must remain current on your property taxes. Unpaid taxes can trigger a default on the loan. We discuss this in detail during the application process and can explain options for tax escrow if needed.
Homeowner's Insurance
Your homeowner's insurance policy must remain active throughout the loan. Flood insurance may also be required depending on your property's location. Letting coverage lapse is a common and avoidable loan default.
Primary Occupancy
The home must remain your primary residence. If you are away for more than 12 consecutive months — due to medical care or other reasons — the loan may become due. This requirement is particularly relevant for borrowers considering assisted living in the future.
Common Questions
Frequently Asked Questions
Clear, plain-language answers to the questions Alabama seniors and their families ask us most.
Start the Conversation
Ready to Learn More?
There is no obligation and no pressure. A conversation with Jarrod is simply an opportunity to ask questions, get honest answers, and understand whether a reverse mortgage makes sense for your specific situation. Family members are always welcome to join.
Serving All of Alabama
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