Home equity · HECM
A reverse mortgage can turn home equity into a lump sum, a line of credit, or a monthly tenure payment.
The common product is a Home Equity Conversion Mortgage (HECM). The youngest borrower must be 62. HUD counseling is required. The home generally has to stay the primary residence. This is not a VA product. We are not a lender.
How a HECM actually works
A licensed lender advances funds against the house. You do not make monthly mortgage payments on the HECM itself. Interest and fees accrue. The loan comes due when the last borrower dies, sells, or no longer lives in the home as a principal residence (with some absence rules). Heirs can sell, refinance, or pay it off; they are not personally liable beyond the house if it is a HECM.
Ways to take the money
- Lump sum — a single draw at closing. Useful for a community deposit or to pay off a regular mortgage.
- Line of credit — draw as care bills arrive. Unused credit can grow over time under HECM rules.
- Tenure — a monthly check for as long as the borrower lives in the home.
Hard limits families run into
- Youngest borrower (or eligible non-borrowing spouse, in the cases that qualify) must meet the age rule — 62+ for a HECM.
- Occupancy. If the plan is to move permanently into assisted living and leave the house empty, a HECM is often the wrong tool. Selling, a bridge, or a conventional loan may fit better.
- Property type and condition have to pass FHA rules. Condos need to be in an approved project. Some manufactured homes do not qualify.
- Existing mortgages get paid off at closing. If the payoff eats most of the principal limit, the leftover cash may be small.
- HUD counseling is mandatory and independent of the lender. Budget time for it.
A reverse mortgage is not a VA benefit, even if the homeowner is a veteran. VA home loans and Aid & Attendance are different programs. Do not mix the paperwork.
Our role
We help you decide whether a HECM belongs on the list at all — especially versus selling or a short bridge. If you want to talk to a licensed reverse-mortgage lender, we introduce you. We do not originate loans and we do not quote a principal limit as if it were a commitment.
HECM is an FHA-insured product. Principal limits, mortgage-insurance premiums, and counseling rules change. Confirm details with HUD.gov or a licensed lender. This is not a credit offer.
Ask about a reverse mortgage
Age, occupancy, and the house decide this more than a brochure does.