Three Ways to Use a HECM
The right structure depends on how you want to use your home equity and what you want it to accomplish.
1. HECM Line of Credit
A HECM Line of Credit allows eligible homeowners age 62+ to convert a portion of their home equity into accessible funds while continuing to live in their home.
Unlike a traditional home equity line of credit (HELOC), the HECM Line of Credit is specifically designed for older homeowners and does not require mandatory monthly mortgage payments as long as loan obligations are met.
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HECM Line of Credit Growth Rate
One unique feature of the HECM Line of Credit is that the unused portion of the available credit line may grow over time. This growth is not tied to home appreciation, but instead is based on the loan’s interest rate and mortgage insurance factors.
2. HECM Lump Sum or Partial Payout
This option can provide access to a portion of your available home equity as a lump sum or partial payout, giving you added flexibility for larger expenses or financial needs.
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3. HECM for Purchase
A HECM for Purchase allows eligible homeowners age 62+ to purchase a new primary residence using a combination of their own funds and a HECM reverse mortgage — without a required monthly mortgage payment.*
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Additional Types of HECM Reverse Loans
In addition to traditional HECM reverse mortgages, some homeowners may benefit from specialized proprietary reverse mortgage solutions.
These options are designed to provide greater flexibility for higher-value homes or unique financial situations that may fall outside standard HECM guidelines.
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NEXT STEPS
Which Option Is Right for You?
Have questions about HECM loan program options?
Call (888) 225-3336 or schedule a consultation.
