A home equity conversion mortgage is also known as reverse annuity mortgage or, most commonly, a reverse mortgage. This mortgage, developed by the Federal Housing Administration, is typically used by older owners who have little or no income but a large amount of equity built into their home. In this case, the lender pays the homeowner instead of the homeowner paying the lender. The lender has a choice to pay the homeowner in one lump some, but this type of mortgage is most often paid monthly. The lender makes regular payments to the homeowner while a corresponding lien builds against the home. These types of loans are typically used by retired people, and the loan repayment obligation is usually deferred until the property is sold or the owner leaves.