Learn About The New Reverse Mortgage (HECM)
Turn a portion of your home equity into flexible funds for retirement, care, or future needs.
For many homeowners, their home is their largest source of wealth—but much of that equity often goes unused while retirement expenses continue to rise and financial flexibility becomes more important.
Most 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
Many homeowners are beginning to use a reverse mortgage (HECM) to leverage a portion of their home equity as part of a broader retirement strategy.
Today’s Reverse Mortgage Includes Strong Consumer Safeguards
Today’s federally insured reverse mortgage program includes important 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.
Because of its structure, many financial planners view the HECM line of credit as a potential tool for supporting retirement planning flexibility.
What is a Reverse Mortgage (HECM)?
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.
Key Features of a Reverse Mortgage:
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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 a Reverse Mortgage Works:
A 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
Call Now: (888) 225-3336
Additional Types of Reverse Mortgage (HECM) Loans
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.
2nd Reverse Mortgage
The 2nd Reverse Mortgage is a unique product within the proprietary portfolio. It allows seniors to keep their 1st mortgage and tap into a little more of their equity to supplement their retirement needs.
Reasons for Consideration:
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The existing first mortgage interest rate is at historically low levels, and the borrower can comfortably make the payment.
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The borrower would like to access additional funds without an additional mortgage payment.
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Home has appreciated significantly, with access to more equity.
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The interest rate is fixed to avoid interest rate fluctuations.
Qualifications for a Reverse Mortgage (HECM)
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.
The qualifications 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.
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.
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 free consultation to learn more about your options and determine whether a reverse mortgage may be a fit for your situation.
Have questions about reverse mortgage options? Call (888) 225-3336 or schedule a consultation.