What is a Home Equity Conversion Mortgage (HECM)?

Do You Qualify for a Reverse Mortgage? If you’re 62 or older and own a home, you may qualify for a reverse mortgage. An FHA-insured Home Equity Conversion Mortgage (HECM) lets eligible homeowners access their home equity with no required monthly mortgage payments, while continuing to live in the home. Reverse mortgage requirements are designed ... Read more

If one co-borrower on a reverse mortgage passes away or permanently moves out for health reasons, the remaining co-borrower can continue living in the home with no change to the loan, as long as they continue to meet the loan requirements. This protection applies to FHA-insured Home Equity Conversion Mortgages (HECMs) when both borrowers are ... Read more

A reverse mortgage loan becomes due only after a qualifying event occurs. With an FHA-insured Home Equity Conversion Mortgage (HECM), there are no required monthly mortgage payments as long as the borrower continues to meet the loan requirements and lives in the home as their primary residence. What Triggers a Reverse Mortgage to Become Due? ... Read more

Yes — you can refinance an existing mortgage, home equity loan, HELOC, or other qualifying debt with a reverse mortgage. This is one of the most common reasons seniors choose an FHA-insured Home Equity Conversion Mortgage (HECM). How Reverse Mortgage Refinancing Works A reverse mortgage refinance allows homeowners age 62 or older to: After the ... Read more

No — reverse mortgage proceeds are not taxable.* With an FHA-insured Home Equity Conversion Mortgage (HECM), the funds you receive are loan proceeds, not income, making them a tax-free source of cash flow for seniors in retirement. Key Benefits of Tax-Free Reverse Mortgage Funds Ongoing Responsibilities Even though the funds are tax-free, homeowners must continue ... Read more

The amount you can receive from an FHA-insured Home Equity Conversion Mortgage (HECM) depends on several key factors that determine your available loan proceeds. Factors That Affect Your Reverse Mortgage Amount Lenders calculate your principal limit (maximum loan amount) based on: In general: How Existing Debt Affects Your Loan Any existing mortgage or home equity ... Read more

Yes — there are fees associated with an FHA-insured Home Equity Conversion Mortgage (HECM) reverse mortgage. However, many of these costs can be financed directly into the loan, minimizing out-of-pocket expenses for seniors. Common Reverse Mortgage Fees While these fees are similar to those of a traditional mortgage, the key difference is that most reverse ... Read more

Why Reverse Mortgages Can Be Better for Seniors A reverse mortgage is fundamentally different from a traditional home equity loan or line of credit (HELOC). Understanding these differences helps seniors safely access home equity in retirement. Key Differences Why Seniors Choose Reverse Mortgages .

With an FHA-insured Home Equity Conversion Mortgage (HECM), seniors have multiple flexible ways to access reverse mortgage funds, making it a highly customizable tool for retirement. Borrowers age 62 and older can choose the option that best fits their financial goals and needs. Ways to Receive Reverse Mortgage Funds Lump Sum Payment Receive the entire ... Read more

A reverse mortgage is a specialized home loan designed for homeowners age 62 and older. It allows seniors to convert a portion of their home equity into tax-free cash without making monthly mortgage payments, providing a flexible financial tool for retirement. Unlike a traditional mortgage—where the homeowner pays the lender each month—a reverse mortgage pays ... Read more

With an FHA-insured Home Equity Conversion Mortgage (HECM), borrowers age 62 and older can choose between fixed or variable interest rates, depending on their financial goals and preferred method of accessing funds. Fixed Interest Rates Available when taking a lump sum at closing Offers predictable, stable interest over the life of the loan Ideal for ... Read more

A reverse mortgage generally does not affect government benefits, making it a safe financial tool for seniors who rely on programs like Social Security or Medicare. How Reverse Mortgage Funds Are Treated ⚠️ Note: Large lump-sum disbursements deposited into accounts exceeding asset limits may affect programs like SSI, so careful planning or spreading payments over ... Read more

Reverse mortgage proceeds can be used in many ways to enhance financial security, lifestyle, and long-term planning during retirement. With an FHA-insured Home Equity Conversion Mortgage (HECM), homeowners age 62 and older can access tax-free funds while continuing to live in their home. Common Uses for Reverse Mortgage Funds Disbursement Options Reverse mortgage proceeds can ... Read more

When an FHA-insured Home Equity Conversion Mortgage (HECM) reverse mortgage becomes due, borrowers are required to repay only the loan balance, which includes: When Does the Loan Become Due? A reverse mortgage typically becomes due when: Non-Recourse Protection How Repayment Works Key Takeaways Understanding repayment rules helps seniors and their families plan responsibly, maintain financial ... Read more

A Home Equity Conversion Mortgage (HECM) is the most widely used FHA-insured reverse mortgage, designed specifically for homeowners age 62 and older. A HECM allows seniors to convert a portion of their home equity into tax-free cash while continuing to live in and retain full ownership of their home. This government-insured reverse mortgage provides a ... Read more

Yes, homeowners age 62 and older can refinance a reverse mortgage. A refinance allows you to replace an existing Home Equity Conversion Mortgage (HECM) with a new reverse mortgage to access more home equity or improve loan terms. Seniors most often refinance when their home value has increased, FHA lending limits have risen, or current ... Read more