Thinking about using your home equity to stay in your Hanover home longer? A reverse mortgage can help, but it is not the right fit for everyone. You want clear answers, not sales talk. In this guide, you will learn how FHA-insured reverse mortgages work, what you still need to pay and maintain, how to compare options, and the local steps to take in Hanover before you decide. Let’s dive in.

Reverse mortgage basics

A reverse mortgage most often refers to an FHA-insured Home Equity Conversion Mortgage, or HECM. With a HECM, you keep title to your home, and you can receive funds as a line of credit, monthly payments, a lump sum, or a mix. The loan comes due when the last borrower or eligible non-borrowing spouse dies, sells, or no longer lives in the home as a primary residence. You must keep up with property taxes, homeowners insurance, and basic maintenance. To learn more about program mechanics, review the FHA’s overview of the HECM program on the HUD HECM program page and the Consumer Financial Protection Bureau’s plain-language explanation of what a reverse mortgage is and how it works.

HECMs are non-recourse loans. That means when the loan is repaid, neither you nor your heirs will owe more than the home is worth, as long as the loan terms were met. If the sale proceeds are less than the balance, FHA insurance covers the gap for the lender. This feature is a core consumer protection.

How much you can access

Your available funds, called the principal limit, depend on three main factors: the age of the youngest borrower, current interest rates, and the lesser of your home’s appraised value or FHA’s lending limit. Older borrowers and lower interest rates generally increase the available amount. If you have an existing mortgage, the HECM must pay it off at closing first, and only remaining funds are available to you.

You can choose how to receive proceeds. Many homeowners prefer a line of credit, which can grow over time on the unused portion. Others choose monthly tenure payments to supplement retirement income, or a term payment for a defined period. You can also combine options. Your counselor and lender can illustrate scenarios so you can compare.

Counseling and lender assessment

Before you can move forward, you must complete counseling with a HUD-approved housing counselor. Counseling covers how HECMs work, alternatives like selling or using a HELOC, costs, and your obligations after closing. You will receive a certificate that lenders require. Schedule this step through the HUD housing counseling locator.

Lenders must complete a financial assessment that reviews your income, credit history, assets, and monthly obligations to gauge whether you can reliably keep paying property taxes, homeowners insurance, and any HOA or condo dues. If there is risk, the lender may require a set-aside from your proceeds to cover property charges. Ask your lender to show you how any set-asides would change the funds available to you.

Lenders must provide standardized disclosures that show fees, rate assumptions, and how the loan balance could grow over time. Get estimates from at least two FHA-approved lenders so you can compare origination fees, servicing practices, and rate structures side by side.

Your ongoing obligations in Hanover

Even with a reverse mortgage, you must continue to meet certain property-related obligations. In Hanover, plan ahead for these items so you stay in good standing.

Property taxes

You remain responsible for local property taxes. If taxes are not paid, the loan can go into default. Ask the Hanover Assessor’s Office to confirm your current tax bill, billing cycle, and any senior exemptions or deferral options. Massachusetts also offers a statewide Senior Circuit Breaker tax credit for eligible homeowners based on property taxes and income. A tax professional can help you understand whether you qualify.

Homeowners insurance and flood risk

You must keep continuous homeowners insurance. If your home is in a Special Flood Hazard Area, flood insurance is required. Premiums can be significant. Use the FEMA Flood Map Service Center or ask the town for help reviewing your flood zone status so you can budget accurately.

HOA or condo dues

If you live in a condominium or HOA community, you must keep dues and assessments current. For condos, the project generally needs to meet FHA approval standards or satisfy a lender’s review. Ask for your association’s current budget, reserves, and any pending special assessments before you apply. Unpaid dues can trigger loan issues.

Basic maintenance and repairs

You need to keep the home in reasonable repair. Large deferred maintenance can be a problem. Many homeowners use a portion of HECM proceeds to fund essential updates like roof, siding, or safety upgrades to support aging in place.

Hanover due diligence checklist

Use this quick checklist before you decide:

• Confirm you are at least 62 and the home is your primary residence.
• Get a realistic market value estimate from a local professional so you understand how much equity you are working with.
• Schedule required counseling through the HUD counseling locator.
• Request written illustrations from at least two FHA-approved lenders with fees, rate assumptions, and proceeds.
• Verify local obligations and status:
  • Confirm taxes, exemptions, and deferrals with the Hanover Assessor’s Office.
  • Review your homeowners insurance policy and flood zone at the FEMA Flood Map Service Center.
  • If in a condo or HOA, gather bylaws, budget, reserves, and any pending assessments.
  • Search your title and any liens through the Plymouth County Registry of Deeds.
• Speak with an elder-law attorney or financial planner about estate goals, Medicaid planning, and tax implications.
• If you prefer independent guidance on lenders, check oversight resources at the Massachusetts Division of Banks.

Costs you should expect

HECMs include several cost components. Common items include an FHA mortgage insurance premium at closing and annually, a lender origination fee subject to HUD caps, standard third-party closing costs like appraisal and title, and possible servicing fees. Ask each lender for a detailed fee breakdown and a net proceeds estimate. Your counselor will also explain typical fees and how they affect your equity over time.

Age in place or rightsize in Hanover?

A reverse mortgage can be a smart tool for aging in place if the home suits your long-term needs and you can reliably cover property charges.

You might lean toward a HECM if:

• Your home works for the long term or needs only modest accessibility updates.
• You want to stay near familiar neighbors, services, and routines in Hanover.
• You need a reliable cash-flow supplement for living expenses, in-home care, or home modifications.
• You have meaningful equity after paying off any existing mortgage and fees.
• You are comfortable with the trade-off that rising loan balances reduce eventual inheritance.

You might lean toward selling or rightsizing if:

• The home needs major repairs or ongoing maintenance you do not want to manage.
• Stairs, layout, or distance from care and services no longer works for you.
• After paying off your current mortgage and fees, HECM proceeds would not meet your goals.
• You want to preserve more home equity for heirs.
• You prefer to eliminate homeowner obligations and simplify costs.

There is also a hybrid path. With HECM for Purchase, you can sell your current home and buy a smaller or more accessible property without taking on a traditional monthly mortgage payment. You would bring a down payment at closing, and the HECM covers the rest up to your principal limit. Review basics on the HUD HECM program page and ask lenders for a side-by-side illustration of HECM for Purchase compared with a cash purchase or conventional mortgage.

Planning support and local resources

Good planning makes all the difference. Start with counseling, then compare lender estimates and involve trusted advisors. Hanover has local resources that can help you age in place with confidence:

• Hanover Council on Aging. Learn about transportation, in-home support, and possible funding for accessibility upgrades.
• Hanover Assessor’s Office. Confirm taxes, exemptions, and deferral programs.
• Plymouth County Registry of Deeds. Review title history, liens, and recorded mortgages.
• Massachusetts Division of Banks. Check lender licensing and consumer alerts.
• FEMA Flood Map Service Center. Verify flood zone and insurance needs.

How to compare lenders

Create a simple apples-to-apples list so you can compare clearly.

• Request identical scenarios from each lender using the same estimated home value, borrower age, and interest-rate assumptions.
• Ask for a full fee itemization, including origination, closing costs, mortgage insurance premiums, and any servicing fee.
• Review line-of-credit growth features and any limits on first-year draws.
• Confirm whether a life expectancy set-aside or monthly set-aside would be required and how that affects your available funds.
• Read the amortization schedules to see how balances might grow under different rate paths. Your counselor can help you interpret them.

If anything feels rushed or unclear, pause and ask questions. Avoid high-pressure pitches and promises that sound too good to be true. For objective guidance, compare what you are told with the CFPB’s consumer pages on how reverse mortgages work.

Documents to gather before you apply

Preparing your paperwork up front makes the process smoother and helps you and your advisors evaluate options.

• Government ID for each borrower
• Recent mortgage statement and payoff letter, if applicable
• Deed and title information
• Property tax bill and any exemption or deferral documentation
• Homeowners and flood insurance declarations
• HOA or condo bylaws, budget, reserves, and assessment history, if applicable
• Income and asset statements for the lender’s financial assessment

What happens when the loan becomes due

When the last borrower or eligible non-borrowing spouse no longer occupies the home, or if you sell the property, the HECM balance becomes due. Most families sell the home and repay the loan from the sale proceeds. Because HECMs are non-recourse, if the balance is more than the home’s value, you and your heirs do not owe the difference. Heirs who want to keep the home can usually pay the lesser of the loan balance or the home’s market value, subject to program rules and timelines. Your counselor and lender can outline the steps so your family knows what to expect.

Final thought

A reverse mortgage can be a helpful tool for Hanover homeowners who want to age in place, but the best choice depends on your home, your health, your cash flow, and your goals for family and legacy. With the right plan, you can compare a HECM against selling or right sizing and feel confident about your next move.

Ready to talk through your options privately and locally? Start your next chapter with confidence — schedule a conversation with Unknown Company.

FAQs

What is a reverse mortgage and who qualifies in Hanover?

• A reverse mortgage is an FHA-insured HECM that lets homeowners 62 or older tap home equity while living in the home as a primary residence, subject to counseling, lender assessment, and property-charge obligations.

How do property taxes work with a reverse mortgage in Hanover?

• You must keep paying local property taxes; confirm amounts and any senior exemptions or deferrals with the Hanover Assessor’s Office, since missed payments can trigger default.

What happens to my home and heirs when a HECM ends?

• When the loan becomes due, most families sell the home to repay the balance; because HECMs are non-recourse, heirs never owe more than the home’s value if program terms were met.

Can I get a reverse mortgage on a Hanover condo?

• Yes, many condos qualify if the project meets FHA standards or a lender’s review; you must also keep condo dues and assessments current to remain in good standing.

Is HECM for Purchase a good option if I want to rightsize locally?

• It can be, since you can buy a new primary residence without a traditional monthly mortgage payment, though you will need a down payment and must still pay taxes, insurance, and upkeep.

Where can I find unbiased help before I apply?

• Start with a HUD-approved housing counselor and review the CFPB’s guide on how reverse mortgages work for clear, independent information.

Please also reach out to Juli Ford at 617-733-1124 with any questions.  Juli is a Reverse Mortgage Specialist and Mortgage Loan Originator through Texana Bank where she is licensed in all 50 US states.  Her NMLS ID is 2728620.