Reverse mortgages allow homeowners age 62 or older to borrow against their home equity and receive the money in the form of a steady stream of income (annuity), a lump sum payment or a line of credit they can draw on. A reverse mortgage is different from a home equity loan because the loan is not due until the person dies, or moves out of the home. As long as the loan borrower continues to live in the home, they can receive the payments until death. Once the borrower dies, the loan must be paid back either from the sale of the home or with the borrower’s estate. If the sale of the house does not repay the lender, then the house becomes there property. If proceeds from the sale of the home are insufficient to pay the outstanding loan balance, lenders can file an insurance claim with the FHA.