Home Equity Conversion Mortgage (HECM)

Unlock your home’s equity and open the door to possibilities in retirement.

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Single storey house with white exterior in Florida

What is a “HECM” Reverse Mortgage Loan?

Specifically designed for homeowners aged 62+, a reverse mortgage is a home loan that allows borrowers to convert a portion of the equity they have in their home into cash.

Insured by the Federal Housing Administration (FHA)

Can only get one through an FHA-approved lender

Turn home equity into a retirement income stream

Key benefits of HECM.

Increased monthly cash flow

Unlock and secure cash from a portion of your home equity without incurring income tax* (generally, it won’t affect your Social Security and Basic Medicare benefits). You can use the funds for anything that you want.

*This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation

Flexible repayment feature

You have the option to repay as much or as little of the loan balance each month, or you can make no monthly mortgages payments at all. However, you must still maintain the home and pay homeowners insurance and property taxes.

The FHA guarantees no repayment of the loan is required until the last borrower moves out or passes away. When you move out of your home, you or your estate has up to 12 months to repay the loan balance, which is typically achieved by selling the home.

Non-recourse feature

The FHA guarantees that if the balance on the loan exceeds the home value at the time the home is sold, neither you nor your heirs will be responsible for paying the outstanding balance (the FHA will pay it).

If there are excess proceeds from the sale of your home, you (or your heirs) would receive them.

Common uses of Reverse Mortgage.

Discover the Many Ways a Reverse Mortgage Can Help Enhance Your Retirement.

Bridge the Medicare gap from age 62 to 65

Raise funds to purchase a second home

Refinancing your existing mortgage. T&C apply

Debt consolidation

Cover medical expenses

Fund major expenses, such as in-home care or home renovations

Use as a standby line of credit

Supplement cash flow with a steady stream of funds

Several options of disbursement.

Flexible Loan Disbursement Options to Suit Your Unique Retirement Needs.

Combo of monthly payments and a line of credit

A line of credit

Term (set period of time)

Tenure (life of the loan)

Fixed monthly advances

A lump sum payout

Eligibility of HECM.

As a reverse mortgage borrower, you have three main responsibilities:

  • You are required to pay your property charges — such as property taxes and homeowners insurance—on time.
  • Your home must be kept in good repair.
  • Your home must be your principal residence.
Important information

Remember, if you don’t meet these requirements, you could lose your home to foreclosure.

Eligible properties.

Understanding Property Requirements for a Reverse Mortgage.

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Single-family Residence
2- to 4-Unit Properties
Planned Unit Developments
FHA-Approved Condominiums
Manufactured Homes
Modular Homes & Townhomes

Eligibility of HECM.

Age
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Ownership
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Residency
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Property type
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Credit
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Counseling
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