specialty
Reverse Mortgage (HECM)
A federally insured loan for homeowners 62 and older to convert part of their home equity into cash — with no required monthly mortgage payment.
Eligibility
- Available to homeowners age 62 and older
- Home must be your primary residence
- HUD-approved counseling is required before you can apply
- You must stay current on property taxes, homeowners insurance, and any HOA dues
Key benefits
- No required monthly principal and interest payments while you live in the home
- Access equity as a lump sum, line of credit, monthly payments, or a combination
- You keep ownership and title to your home
- A non-recourse loan — you and your heirs never owe more than the home's value when it's repaid
What is a reverse mortgage?
A Home Equity Conversion Mortgage (HECM), commonly called a reverse mortgage, is a federally insured loan for homeowners age 62 and older. It lets you convert part of your home's equity into cash without selling the home or making required monthly mortgage payments, as long as you continue to live there as your primary residence and meet the loan obligations.
Who it's for
Homeowners 62 and older who want to supplement retirement income, eliminate an existing monthly mortgage payment, cover healthcare or long-term care costs, or create a financial safety net while continuing to own and live in their home.
What to keep in mind
You keep ownership and title to your home, and HECM loans are non-recourse — meaning you and your heirs will never owe more than the home's value when the loan is repaid. You remain responsible for property taxes, homeowners insurance, and any HOA dues, and HUD-approved counseling is required before you can apply. A reverse mortgage is a significant financial decision, and we'll walk you through whether it fits your situation.
Frequently asked
- Do I still own my home with a reverse mortgage?
- Yes. With a HECM you retain ownership and title to your home. The loan becomes due when the last borrower permanently leaves the home, sells it, or passes away — at which point the home is typically sold and the balance repaid from the proceeds.
- Are the funds taxable?
- Funds received from a HECM are generally not treated as taxable income, but everyone's situation is different — you should confirm how it applies to you with a qualified tax advisor.
- What are my responsibilities as a borrower?
- You must live in the home as your primary residence, keep it in good condition, and stay current on property taxes, homeowners insurance, and any applicable HOA dues. HUD-approved counseling is also required before you apply.