While gathering reverse mortgage information, many seniors are also interested in how their loan will be paid off upon their death. Reverse mortgages become due once all borrowers named on the loan die. If there are two borrowers, both individuals must pass away before their lender can require repayment. Traditional home equity loans are becoming more and more difficult to get. Banks are hesitant about making loans because of the economy and their decrease in cash flow. Reverse mortgages, however, are different. What types of Properties Qualify for a Reverse Mortgage? reverse mortgage The FHA and the Department of Housing and Urban Development have taken over the responsibility of administrating reverse mortgages. After accounting for the initial loan amount, and other important factors, the transaction is structured so that the loan amount does not exceed the home value over the life of the loan. A good news first, there is no monthly payments.