Who is the Best Candidate for a Reverse Annuity Mortgage?

Shawn Plummer

CEO, The Annuity Expert

Ideal Candidates for Reverse Annuity Mortgages

  1. Age Factor: Primarily homeowners aged 62 or older.
  2. Equity Requirement: Individuals with significant equity in their home.
  3. Income Considerations: Those with limited income but need additional cash flow.
  4. Long-term Planning: Residents intend to stay in their homes for many years.
  5. Financial Stability: People without the need to leave a home as an inheritance.

Examples of Suitable Candidates

  • A retired couple, both aged 65, own a fully paid-off home and require extra funds for living expenses.
  • A 70-year-old widow with a high-value home looking to supplement her social security income.
Candidates For A Reverse Annuity

Benefits for Suitable Candidates

  • Increased Cash Flow: Converts home equity into usable funds.
  • No Monthly Mortgage Payments: Payments are deferred until the homeowner moves out or passes away.
  • Age in Place: Allows seniors to stay in their homes while accessing equity.

Risks and Considerations

  • Decreased Inheritance: Reduces the value of estate for heirs.
  • Accumulating Interest: The loan balance grows over time, which could consume a significant portion of home equity.
  • Insurance and Taxes: Homeowners must continue paying property taxes and insurance.

Comparison of Reverse Annuity Mortgage Suitability

Age GroupHome EquityAdditional Cash Flow NeedIntention to Stay in HomeEstate PlansSuitability Rating
Under 62HighHighYesNot a priorityLow
62+HighHighYesNot a priorityHigh
Under 62HighLowNoImportantVery Low


The ideal candidate for a reverse annuity mortgage is typically a senior homeowner aged 62 or older with substantial home equity and a need for additional cash flow without intending to leave their home as an inheritance. This financial tool can provide significant benefits for those in the right circumstances. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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