THE HECM EQUITY 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 Home Equity Conversion Mortgage (HECM) to leverage a portion of their home equity as part of a broader retirement strategy.
Explore 9 Ways to Live Better With a HECM →
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 without requiring monthly mortgage payments.
There are several types of HECM 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
PUTTING HOME EQUITY TO WORK
Make Your Home Equity Part of the Plan
A HECM can provide greater financial flexibility in retirement—whether you want to access home equity, help manage changing care needs, or purchase a home that better fits your next chapter.
With stronger consumer protections, HECMs are increasingly viewed as a strategic retirement planning tool—not simply a loan of last resort.
A HECM 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.
How a HECM Works
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
HECM Mortgage Process
From start to finish, it typically takes 45-60 days to finalize this program.
Step 1.
Meet With A HECM
Mortgage Consultant
Step 2.
Independant Counseling
(1-2 Hours)
Step 3.
Complete The Application Process
Step 4.
Obtain A Home Appraisal
Step 5.
Loan Submission & Approval
Step 6.
Funding & Cash Disbursement
Qualifications for a HECM
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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.
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. If the loan balance exceeds the home’s value when repayment is due, your heirs aren’t personally responsible for the difference.
NO PERSONAL LIABILITY
Your heirs aren't personally responsible for a HECM balance that exceeds the home's value.
REMAINING EQUITY STAYS WITH THE FAMILY
If the home is sold for more than the amount owed, the remaining equity belongs to the estate or heirs.
THE HOME CAN BE KEPT
Heirs who want to keep the home have options for satisfying the HECM balance.
What Happens to Your Home When You Pass Away?
When the last borrower leaves the home, heirs generally have options.
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Keep the home by satisfying the HECM loan balance.
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Sell the home and retain any remaining equity after the loan is repaid.
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Walk away from the home without becoming personally responsible for a loan balance that exceeds the home's value.