What is a reverse mortgage and how does it work in Washington State?

A reverse mortgage in Washington allows homeowners 62 and older to convert part of their home equity into tax-free cash with no required monthly mortgage payment. The most common type is the FHA-insured HECM (Home Equity Conversion Mortgage). Instead of making payments to a lender, the lender makes payments to you — or provides a lump sum or line of credit. The loan becomes due when you sell the home, move out, or pass away. Your heirs can repay the loan and keep the home, or sell to pay it off.