(888) 225-3336
What is a HECM?
A Home Equity Conversion Mortgage (HECM) is an FHA-insured reverse mortgage designed for homeowners age 62 and older. It allows eligible homeowners to access a portion of their home equity while continuing to own and live in their home.*
​
HECM proceeds can be structured around your needs, with options that may include a line of credit, monthly advances, a lump sum, or a HECM for Purchase.
​
​
Key Features:​​​​
​
-
No required monthly principal and interest payments*
-
You retain ownership of your home*
-
Multiple ways to access available proceeds
-
FHA-insured and non-recourse
​
​
Who Qualifies for a HECM?
​To qualify for a HECM, borrowers generally must meet several requirements:​​​​
-
​Age 62 or older — at least one borrower must meet the minimum age requirement.
-
Primary residence — the home must be your principal residence.
-
Sufficient home equity — the amount available depends in part on the age of the youngest borrower or eligible non-borrowing spouse, the home’s value, and current interest rates.
-
Financial assessment — the lender will review income, credit history, and the ability to meet ongoing property obligations.
-
Existing mortgage balance — any existing liens generally must be paid off at closing with HECM proceeds or other available funds.
​​​​
HECM Mortgage Process
While timing varies, the HECM process typically takes approximately 45–60 days from application through closing.
Step 1.
Meet With A HECM
Mortgage Consultant
Step 2.
Independent Counseling
(1-2 Hours)
Step 3.
Complete The Application
Step 4.
Complete the Home Appraisal
Step 5.
Loan Review & Approval
Step 6.
Closing & Funding
CONSUMER PROTECTIONS
A New Era for HECM Mortgage
Today's FHA-insured HECM 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.
PROTECTION FOR HEIRS
Your Heirs Won’t Owe More Than the Home Is Worth
A HECM is a non-recourse loan, which means neither you nor your heirs are personally responsible for a loan balance that exceeds the home’s value. When the last borrower leaves the home, heirs generally have several options:
Keep the Home
Heirs may keep the home by satisfying the HECM loan balance.
​
Sell the Home
The home can be sold to repay the loan. Any remaining equity belongs to the estate or heirs.
​
Walk Away Without Personal Liability
If the loan balance exceeds the home’s value, heirs can generally walk away without being personally responsible for the difference.
With stronger consumer protections, today’s HECM has evolved from a loan often associated with financial need into a strategic retirement planning tool used by homeowners for greater flexibility and choice.
Explore More About HECMs
Explore the options below to see how a HECM may fit into your retirement strategy.
