Just like a traditional mortgage, with a HECM you are borrowing money and using your home as security for the loan. You must continue to pay for property taxes, homeowner's insurance, and make repairs needed to maintain your home or the lender can foreclose on the home.

The FHA has specific reverse mortgage requirements that borrowers must meet. The youngest borrower must be at least 62 years old. As with any loan, certain financial criteria must be met.

You may be disqualified from getting a reverse mortgage if you are below age 62, you have less than 50% equity in your home, or you don't have enough income or assets to afford the ongoing costs such as property taxes and homeowner insurance.

A reverse mortgage isn't free money: The borrowing costs can be high, and you'll still need to pay for homeowners insurance and property taxes. Reverse mortgages can also complicate life for your heirs, especially if they don't want the home or the home's value isn't enough to cover what's owed.