“Equity Share” is NOT a Component of an FHA Mortgage Loan!
While an FHA reverse mortgage offers borrowers significant protections, you must ensure you are looking at an FHA program, not an equity share program. They are not the same.
The Story: A Costly Misunderstanding
Julie and Anthony were in a crisis. When Anthony became ill, medical bills piled up faster than they could manage. Under immense pressure, they responded to a postcard from a lender advertising a "cash-out loan with no monthly payments."
It sounded like the perfect solution—until they realized the catch.
Instead of an FHA-insured reverse mortgage (HECM), they had signed onto an “Equity Share” loan. Julie felt rushed and didn't fully understand the terms. Unlike a true reverse mortgage, this agreement meant they were essentially selling off pieces of their home’s ownership to the lender. If the equity ran out, Julie and Anthony would have been forced to leave their home!
The Financial Challenge: Undoing the Mess
Julie was at her wit's end, caring full-time for Anthony while trying to save their home. Not only did they have to pay back the loan balance, but the "Equity Share" terms meant the lender was entitled to a portion of their home's appreciation.
Understandably "gun shy" after her first experience, Julie’s attorney referred her to Kim Dodge and Cheryl Teigen. Julie had a lot of questions—she needed to understand every detail this time. Kim and Cheryl worked closely with the attorney to pry a payoff demand from the slow-moving equity share lender and determine if there was enough equity left to save the home.
The Solution: A True Reverse Mortgage (HECM)
The good news? There was enough equity remaining to qualify for an FHA-insured reverse mortgage. Kim and Cheryl were able to:
Pay off the "Equity Share" loan and the attorney’s fees.
Eliminate monthly principal and interest payments, freeing up cash for Anthony’s care.
Set up a Line of Credit for future emergencies.
With an FHA reverse mortgage, there is NO EQUITY SHARE. It is a lien against your property, just like any other mortgage. You retain 100% of the title and ownership.
Why Choice Matters
Julie now has a plan that gives her control. She intends to make voluntary payments toward the loan balance whenever she has extra money. This will:
Lower her loan balance.
Reduce the interest that accrues.
Build up her Line of Credit so she can draw those funds back out if she ever needs them again.
Solving complex home financing challenges is what Kim Dodge and Cheryl Teigen do best. Julie and Anthony can finally get back to what matters most: healing together.
What to Do Next
Don't be fooled by high-pressure sales pitches or postcards that sound too good to be true. If you want to explore your options with a team that values your ownership and your time, give us a call. We’ll help you understand the difference between "Equity Out" and "Equity Share" so you can stay Retirement Ready.
Contact Kim Dodge and Cheryl Teigen:
Telephone or Text: (503) 595-1600
Email: Hello@KimDodgeReverse.com
Licensed in Oregon & Washington, Kim Dodge, Branch Manager | NMLS 186099 | Cheryl Teigen, Loan Officer | NMLS 2089085 | Kim Dodge Reverse Mortgage, a dba of Zyng Mortgage, Inc. | NMLS 76801 | Equal Housing Opportunity | ConsumerAccess.org