Reverse mortgages for seniors are FHA insured (by the Federal Housing Administration) loans that are collateralized by the equity in a property. Only senior citizens age 62 and older can be considered for these types of loans. Reverse mortgages are not traditional loans because you do not pay the mortgage company every month instead, they pay you. Yes, you read it correctly, the mortgage company purchases the equity in your home by paying you monthly. In some cases, the mortgage company will make a lump sum payment to the owner. The following is a list of pros concerning securing a reverse mortgage: Pros 1. Homeowner can stay in house Reverse mortgages for seniors are very helpful financial tools for those people that are struggling to make ends meet in their later years. It allows seniors to stay in their home by retaining home ownership while they are alive. 2. Property can be passed to heirs The mortgage is FHA insured and this reduces the cost to the heirs when they settle the remaining mortgage debt with the lender. The heirs will only have to settle this debt after the death of the homeowner. 3. FHA insured 4. Loan is non-recourse In addition, the loan is non-recourse which means it will never exceed the value of the property.