Reverse Mortgage (HECM)
A Home Equity Conversion Mortgage (HECM) allows homeowners age 62 and older to convert a portion of their home equity into tax-free cash without selling their home or making monthly mortgage payments.
How It Works
Instead of making payments to a lender, the lender makes payments to you. The loan is repaid when you sell the home, move out, or pass away. You retain ownership of the home and can live in it as long as you maintain it and pay property taxes and insurance.
Payout Options
Lump sum — Receive all funds at once at a fixed rate.
Monthly payments — Receive steady monthly income for as long as you live in the home.
Line of credit — Draw funds as needed with a growing credit line.
Combination — Mix monthly payments with a line of credit.
Requirements
Homeowner must be 62+ years old · Home must be primary residence · Sufficient equity in the home · Must complete HUD-approved counseling · Home must meet FHA property standards.