Home Equity Solutions for Seniors
Meet the new reverse mortgage
Your Home May Be One of Your Most Valuable Retirement Assets
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For many homeowners, their home represents their largest source of wealth. Yet much of that wealth often sits untapped while retirement expenses continue to grow.​
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​​​Many retirees today are looking for ways to:​
• Supplement retirement income
• Prepare for future healthcare costs
• Maintain financial flexibility
• Stay comfortably in their homes as they age
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One option many homeowners are beginning to use is a HECM mortgage that leverages a portion of their home equity as part of a broader retirement strategy.
What is a HECM Mortgage?
The official name for this program is a Home Equity Conversion Mortgage (HECM)—a reverse mortgage insured by the Federal Housing Administration (FHA) for homeowners age 62 and older.
This program allows homeowners age 62 and older to convert a portion of their home equity into cash while continuing to live in their home. Unlike a traditional mortgage, borrowers typically do not make monthly mortgage payments as long as they live in the home and continue to meet loan obligations.
In recent years, the HECM program has undergone several updates designed to strengthen borrower protections and provide additional safeguards for both homeowners and their heirs.
HECM Mortgage Options
1. Line of Credit
Many homeowners choose to establish a HECM Line of Credit.This works similarly to a traditional credit line but with one important difference:
The available credit line can grow over time, giving homeowners access to potentially more funds later if needed. This option is often used as a financial safety net for retirement.
2. Monthly Income
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Some homeowners choose to receive monthly payments from the loan.
This can help supplement retirement income and provide additional monthly cash flow.
3. Lump Sum
In some cases, homeowners choose to receive a lump sum at closing.
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This may be used to:
• Pay off an existing mortgage
• Cover major expenses
• Consolidate other debt
The structure can be customized depending on the homeowner’s goals and financial situation.​​
​With all HECM mortgage options, you retain ownership of your home—all you have to do is continue to pay property taxes and homeowners' insurance and maintain it as you do now.
Proprietary Reverse Loans (Also known as Jumbo Reverse loans)
We also offer proprietary reverse loans that are different from HECM products. Typically, these loans serve homeowners with home values over 1.15 million and up to 4 million.
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How Do You Qualify?
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​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.
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​Who Can Qualify?​
​The qualifications for a reverse mortgage are simple:​
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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.
​How Can I Use the Money?
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You can use the money for anything you like, such as supplementing your income, paying for health care expenses, paying off debt, improving your home, traveling, or just enjoying more discretionary income.​​​​​​​
Explore Whether a Reverse Mortgage (HECM) Fits Your Retirement Strategy​
​Every homeowner’s financial situation is unique. Understanding how a reverse mortgage (HECM) may support your retirement goals begins with a conversation.
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At Live Better Financial, our experienced mortgage advisors help homeowners explore how home equity strategies, including HECM reverse mortgages, may provide additional financial flexibility in retirement.
Schedule a complimentary Home Equity Strategy Consultation to learn more about your options and determine whether a reverse mortgage may be a fit for your situation.