THE OPPORTUNITY
Your Home is a Valuable Resource
For many homeowners, their home is their largest source of wealth—yet much of that equity remains untapped as retirement needs and priorities change.
Most Retirees Today are Looking for Ways to:
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Supplement retirement income
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Maintain financial flexibility
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Protect investment portfolio
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Stay comfortably in their homes as they age
Many homeowners are using a HECM Reverse Mortgage to leverage a portion of their home equity as part of a broader retirement strategy.
CONSUMER PROTECTIONS
A New Era for HECM Reverse Mortgage
Reverse mortgages have evolved significantly over the years.
Today's FHA-insured HECM reverse mortgage program includes improved loan structures, better education, and HUD-governed consumer safeguards designed to help protect homeowners and their families.
From required independent counseling to clear borrower protections, today’s program is structured to support informed decisions and greater peace of mind.
With stronger consumer protections, HECMs are increasingly viewed as a strategic retirement planning tool—not simply a loan of last resort.
What is a HECM Reverse Mortgage?
A Home Equity Conversion Mortgage (HECM) is the official name for the most common type of reverse mortgage available to homeowners age 62 and older.
There are several types of HECM reverse mortgage options available depending on your goals, including line of credit, lump sum, and home purchase solutions.
Key Features:
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No required monthly mortgage payments
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You remain the owner of your home
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Access funds as a line of credit, monthly income, or lump sum
How it Works:
A HECM reverse mortgage allows homeowners age 62+ to convert part of their home equity into cash while continuing to live in their home.
The loan is repaid when the home is sold, the borrower moves out, or the last borrower passes away. Reverse mortgages are non-recourse loans, meaning you or your heirs will never owe more than the value of the home.
Basic steps:
1️⃣ Apply with a licensed mortgage advisor
2️⃣ Complete HUD-approved counseling
3️⃣ Choose how you receive funds
4️⃣ Close the loan and access your equity
Qualifications for a HECM Reverse Mortgage
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For a HECM, either you or your spouse must be 62+ years or older and 55+ for proprietary/jumbo reverse products
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You must live in the property
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You must meet the minimum equity, credit, and income requirements as determined by the lender.
The lender calculates the amount a borrower can qualify for based on the age of the youngest borrower and the amount of equity in the home. If there is an existing loan on the property, that loan would be paid off, and the mortgage payment would be eliminated.
If the total line of credit amount exceeds the mortgage being paid off (or if the house is owned outright), a portion of that amount can either be taken as a ‘lump sum’ at closing, converted into a monthly income stream, or simply remain available for future withdrawals.