A Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage that enables homeowners age 62 and older to convert a portion of their home equity into cash, installment payments, or a line of credit without having to sell their home. With a HECM reverse mortgage you make no monthly mortgage payments and you continue to live in and own your home. Only until the home is sold or the last surviving borrower or non-borrowing spouse no longer live in the home does the HECM need to be repaid. 

• The amount of loan proceeds is determined by your age, the amount of equity and the appraised value of your home.
• A financial assessment will determine your ability to pay the property taxes and insurance.
• You will undergo counseling from a HUD-approved agency.
• The HECM loan proceeds will pay off your current mortgage.
• The cash you receive can be a lump sum, installment payments or a line of credit. The unused portion of the line of credit grows every month and will provide you a significant cushion for the future.
• A HECM will eliminate your monthly mortgage payments and will provide you cash or a growing line of credit.

What would your life look like with no mortgage payments? Live the retirement you always wanted!

You may be eligible if: 

• You are age 62 or older. 
• Your home has sufficient equity. 
• You live in the home as your primary residence. 
• Your home meets Federal Housing Authority (FHA) minimum property standards. 
• Your home is a single-family home, a 2-4 unit property or a HUD-approved condominium. 

Our Reverse Mortgage Specialists can confirm your qualifications and can help you find out if a HECM reverse mortgage is right for you.

The amount is determined by various factors, including the age of the youngest borrower or non-borrowing spouse, your home's value, the amount of equity, FHA lending limits, the current interest rate, and the HECM payment option you choose. A Professional Mortgage Specialist can give you a free quote that's tailored to your specific situation.

You must live in the property as your principal residence and pay the property taxes, hazard insurance, any homeowners association fees and you'll need to keep your home maintained. If these requirements are not met, then the loan will need to be repaid.