HECM Reverse Mortgage

Understand the structure

A HECM is an FHA-insured reverse mortgage generally for eligible homeowners age 62 or older. It is a loan secured by the home, with continuing obligations and costs.

Understand when repayment becomes due

A HECM generally does not require scheduled monthly principal-and-interest payments while its conditions are met, but the debt still accrues under the terms. Sale, loss of qualifying occupancy, or other events can make repayment due. Review protections and obligations for all household members.

Budget for ownership expenses

Taxes, homeowners insurance, property maintenance, and other required charges remain the borrower’s responsibility. Failure to meet obligations can put the home at risk. A reverse mortgage is not a way to eliminate the entire housing budget.

Compare counseling, proceeds, and alternatives

Required counseling helps explain costs, consequences, and alternatives. Available proceeds depend on program factors and required payoffs, not simply total equity. Compare staying with other financing, downsizing, and other available resources before deciding.

Details to bring to a review

• Age and property eligibility
• Required counseling
• Ongoing property charges and estate plans

Start with your goal, property use, timeline, available funds, and relevant current loan information. We will confirm what documentation the selected program requires. Send sensitive records only through the secure application and document process.

Common questions

Compare the next relevant option

• Reverse Mortgages program overview
• Purchase planning
• Refinance planning
• Equity decision guide