There really is no “catch” to the Home Equity Conversion Mortgage, but there are differences to reverse mortgages you should understand.
First, you should know that the reverse mortgage only stays in place while you or someone officially on the loan is living in the home. So the reverse mortgage works great for “aging in place,” if that is your goal.
Also, though you make no payments, lenders do earn income on the loan and those amounts are charged against your equity.
And if you end up enjoying your home after all the equity is used up, there will be no funds left from the home in your estate for an inheritance. However, neither you nor your heirs will owe anything if you stay in the home after the equity is depleted.