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Home Equity Conversion Mortgage

If you are looking for ways to supplement your retirement income, a Federal Housing Administration (FHA) insured1 Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, may be the answer. If you are 62 years of age or older and have sufficient home equity, you may be able to obtain the funds you need to access a portion of your home’s equity without having to make monthly mortgage payments.2 

What is an HECM?

Access Your Home Equity Without Monthly Payments


  • Pay off your existing mortgage2
  • Continue to live in your home and maintain the title2
  • Pay off medical bills, vehicle loans or other debts
  • Improve your monthly cash flow
  • Fund necessary home repairs or renovations
  • Build a “safety net” for unplanned expenses

Unlock Your Home’s Equity

We understand that you want to transition easily into the retirement lifestyle of your choice. We are here to help you access a portion of your home’s equity and make the most of your retirement years. The HECM for Purchase can help homeowners buy their next home without having to make monthly mortgage payments. This loan enables homeowners to use the equity from the sale of a previous residence to buy their next primary home in one transaction with one initial investment (down payment).4

Explore Your Options

Whether you are planning on retiring soon or have already started retirement, take a moment to think about how you envision your retirement lifestyle. Even if you have planned, saved and invested carefully, you may have fewer funds than you had expected to meet your goals. Now is the time to consider all of your financial options and make the right decisions for your future.

A Few of the Loan Benefits:

  • Eliminates your existing monthly mortgage payments2
  • You can stay in your home and maintain the title2
  • Loan proceeds are not taxed as income or otherwise and can be used any way you choose3
  • Heirs inherit any remaining equity after paying off the HECM loan
  • The HECM loan is FHA insured1

Does the HECM loan affect my eligibility for Social Security or Medicare benefits?

A HECM loan usually does not affect eligibility for entitlement programs, such as Medicare or Social Security benefits. Some needs based government benefits, such as Medicaid and Supplemental Security Income (SSI), may be affected by a HECM loan. You should consult a qualified professional to determine if there would be any impact to your government benefits.

What is the main difference between a HECM and a HELOC loan?

With a traditional mortgage loan or Home Equity Line of Credit (HELOC), you have to make monthly loan payments. However, with a HECM loan, you do not need to make monthly mortgage payments.1

When will I be required to repay my HECM loan?

The HECM loan will come due when the home is no longer your primary residence.

Below are additional examples of situations which would trigger HECM repayment:

  • You sell your house or transfer the title to another person
  • If you do not occupy your home for a period of more than twelve consecutive months because of physical or mental illness
  • You do not maintain the home according to FHA requirements
  • You do not pay required property taxes and/or homeowners insurance


Considering the benefits of a HECM?

Our team can help.

Submit the form on the right to request more information. We'll send you more information on how a Home Equity Conversion Mortgage (HECM) works, program details, and what the process is if you do decide to move forward. Disover how a HECM loan can provide a secure retirement and help you live your retirement years more comfortably.

We are here to answer any questions you may have. Contact one of our experienced loan officers for a no-obligation consultation or just to discuss your options.


Talk to a Loan Officer


Warning: Please use this form to submit general inquiries only. Do not send personal information like your account, credit card or social security number or travel dates.

Some FAQs About HECM Loans

Yes. You will retain the title and ownership during the life of the HECM loan, and you can sell your home at any time (at which time the loan becomes due and payable). The loan will not become due as long as you continue to meet loan obligations such as living in the home as your primary residence, maintaining the home according to the FHA requirements, and paying property taxes and homeowners insurance. Failure to meet these requirements can trigger a loan default that may result in foreclosure.

No. You do not need to own your home free and clear. However, any existing mortgages or liens against the property must be paid at or before closing. This is most often done with the HECM loan proceeds.4

Yes, Eventually. However, repayment is not due during the life of the loan provided you meet the loan obligations such as living in the home as your primary residence, maintaining the home according to FHA requirements, and continuing to pay required property taxes and insurance. Repayment is limited to the lesser of the value of your home or the loan balance.

No. Unlike a traditional home mortgage loan or equity loan, you do not make monthly mortgage payments, and any existing mortgage will be paid off using the loan proceeds.5

You can receive your money in a lump sum6, a monthly payment, a line of credit or a combination of the monthly payment and credit line options.

No. HECM loan proceeds are not taxed as income or otherwise (though you must continue to pay required property taxes). However, it is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.

No. The net cash proceeds from the HECM loan can be used for any reason. Many borrowers use it to supplement their retirement income, pay off other debt(s), pay for medical expenses or remodel their home.

This will vary based on your specific circumstances. The counseling fee and appraisal fee are typically paid out-of-pocket after the service is completed. Other closing costs can be financed into the HECM loan.

1 As required by the Federal Housing Administration (FHA), you will be charged an up-front mortgage insurance premium (MIP) at closing and, over the life of the loan, you will be charged an annual MIP based on the loan balance.
2 Your current mortgage, if any, must be paid off using the proceeds from your HECM loan. You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
3 Generally, money received is not considered income and should be tax free, though you must continue to pay required property taxes. Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
4 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
5 Your current mortgage(s) and any other existing liens against the property must be paid off at or before closing. You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
6 Lump sum disbursement is only available on a fixed-rate loan.