A reverse mortgage is a loan that’s similar to a traditional loan, but with a few key differences. In a traditional mortgage, borrowers make monthly payments that decrease their loan balance and increase their home equity. Alternatively, with a reverse mortgage, borrowers are not required to make monthly payments, so the loan balance increases and home equity decreases over time. Borrowers must meet the minimum age requirement (62) and pass the equity eligibility test—but the size of the loan is not based on income nor credit-worthiness, as a traditional mortgage would be. Only certain types of properties are eligible for a reverse mortgage, and the owner must occupy the home as their primary residence.