Reverse mortgage. It’s been one of the most popular real estate search terms throughout the past year.

But what is a reverse mortgage, exactly?

Well, first, you must be at least 62 years old to be eligible for what is often referred to as a “lifetime mortgage.” Secondly, you must agree to stay in the home for as long as you live.

In return, your lender will give you the money to pay off your mortgage. And you don’t have to pay it back — not a single penny — while you are alive.

Here is the catch: If you “move, die or sell the home, the mortgage will need to be paid back in full,” according to the Sun Sentinel.

Curious to know if a reverse mortgage is right for you?

Follow us after the jump to learn about the pros and cons of a Federal Housing Administration-insured HECM loan (reverse mortgage):

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As the real estate market softens in several areas throughout the nation, there is one segment that continues to shine: FHA reverse mortgages.

FHA stands for the Federal Housing Administration, which provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories, according to its official Web site.

FHA reverse mortgages enable the older sector of American homeowners — senior citizens aged 62 years and older — to retire comfortably and remain in the homes in which they have been living for years. This program provides great opportunities for those who have paid off their mortgages (or are about to) to borrow against the equity in their homes.

The most attractive part of this program is that the loans do not have to be repaid until the borrowers move out permanently.

While this is somewhat of an age-restricted borrowing strategy, it will eventually pertain to all homeowners as they reach their golden years. In addition, it’s also something that sons and daughters of aging homeowners should talk to their parents about if there is a need to cover living expenses — past, current and future.

However, the current dilemma with FHA-backed reverse mortgages is that the mandated cap is only $362,790, which doesn’t help those who are living in costly areas.

Fortunately, there is good news on the horizon.

According to The U.S. Department of Housing and Urban Development (HUD) — the federal agency that oversees FHA operations — more senior citizens will be able to qualify for reverse mortgages with the enactment of The Expanding American Homeownership Act of 2007.

In short, if Congress enacts this Act, seniors who have homes worth more than the FHA loan cap but less than $600,000 will be able to qualify for the reverse mortgage program.

So get ready and take aim if the U.S. House of Representatives passes this legislation. It is a gateway for more and more baby boomers to secure financial security and enjoy their retirement years to the fullest.

They have earned it.