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Access equity with a HECM reverse mortgage

A Home Equity Conversion Mortgage (HECM) allows you to convert a portion of your home equity into tax-free funds1, without a new monthly mortgage payment.2

Trustpilot Excellent 4.7 out of 5 stars3
No
Required monthly mortgage payment2
62+
Minimum age to qualify
Nationwide
Available in all 50 states
$1.2M
FHA lending limit

Key advantages of a HECM

Government protection for borrowers

Built-in consumer safeguards ensure that you and your heirs will never owe more than the value of your home.

Eliminate your monthly mortgage payment2

A HECM pays off any existing mortgage. You can repay as much or as little of the new loan balance each month.

Stay in your home and keep ownership4

You retain full ownership of your home. Continue living there as long as you comply with the loan terms.

Flexible funding and payment options

Access your home equity through a lump sum, line of credit, monthly payments, or any combination.

Is a HECM right for you?

Get a quick overview below, or dive into our reverse mortgage guide for the full picture.

Could be good for:

  • Eliminating a monthly mortgage payment2
  • Homes with significant built-up equity
  • Tapping equity for planned or unexpected costs
  • Staying in your home long-term4

May not be right for:

  • Preserving home equity for future inheritance
  • Homes with limited available equity
  • Those unable to maintain condition of their home.
  • Homeowners looking to move soon

2The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.


4The right to remain in the home is contingent on paying property taxes and homeowner’s insurance, maintaining the home, and complying with the loan terms.

See where HECM is available

HECM reverse mortgages are available nationwide.

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How you can put it to use

Our borrowers have put HECM funds to work in all kinds of ways. Here are the most common:

Address higher-interest debt

Pay down higher-interest consumer debt, like credit cards and personal loans.

Fund home improvements

Make repairs and upgrades that help you stay comfortable in the home you love.

Manage household bills

Support cash flow needs and everyday expenses, like utilities and groceries.

Cover medical expenses

Manage medical bills, in-home care, or unexpected costs.

Prepare for major life events

Get added flexibility for important milestones and unexpected emergencies.

Do what matters most

Create more room for the goals, plans, or opportunities ahead.

From first call to closing, here's what to expect

1. Talk to a specialist

30-60 minutes

You’ll speak with a reverse mortgage specialist who can answer every question and give you a clear picture of what’s possible—completely free, with no obligation to apply.

2. Complete required counseling

1-2 hours

Meet with an independent, HUD-approved counselor who will explain the HECM loan, answer your questions, and help you understand your options before moving forward.

3. Submit your application

15 minutes

A loan officer walks you through each part of the paperwork. You’ll always know where things stand and what’s coming next.

4. Home appraisal and review

1-3 weeks

An appraiser visits your home to confirm its market value, which is used to finalize your loan amount. During the underwriting review, your processor will provide regular updates so you’re never left wondering what’s next.

5. Loan approval

2-3 days

If approved, you’ll receive confirmation that your loan is approved and ready to close. Your loan officer will walk you through the final numbers and make sure all your questions are answered before signing.

6. Funds arrive

1 hour + 3 days

After signing, there’s a 3-business-day waiting period. During this time, you can cancel for any reason. Once that period ends, your funds are delivered based on how you chose to receive them. You can cancel within that time, no questions asked.

Answers to the questions homeowners ask most

A HECM is an FHA-insured loan for homeowners age 62 and older that lets you convert a portion of your home equity into tax-free funds. You can receive the money as a lump sum, monthly payments, a line of credit, or a combination of these options. Unlike a traditional mortgage, no monthly mortgage payments are required.*

Another key advantage is that any existing mortgage is paid off using the new loan proceeds, which can free up monthly cash flow for other expenses, goals, or opportunities as they arise. Learn More

*The borrower must meet all loan obligations, including living in the property as the principal residence, maintaining the home, and paying property charges, including property taxes, fees, hazard insurance. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.

While a reverse mortgage doesn’t require monthly mortgage payments*, there is an important tradeoff to understand. Like any loan, a reverse mortgage charges interest. If you choose not to make payments, the interest is added to the loan balance over time, which means the amount owed can grow.

The good news is that you can pay as much or as little as you’d like—including nothing at all. Any payments you make can help reduce the amount of interest that accrues, slow the growth of the loan balance, and preserve more of your home equity.

*The borrower must meet all loan obligations, including living in the property as the principal residence, maintaining the home, and paying property charges, including property taxes, fees, hazard insurance. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.

HECM reverse mortgages include built-in borrower safeguards required by the Federal Housing Administration (FHA). Before closing, you’ll complete independent HUD-approved counseling to help you understand the loan and determine whether it’s right for you. You’ll also benefit from non-recourse protection, which means you or your heirs won’t owe more than your home’s value when the loan becomes due and is repaid. As long as you meet your loan obligations, you maintain ownership of your home and can continue to live there.*

*The right to remain in the home is contingent on paying property taxes and homeowner’s insurance, maintaining the home, and complying with the loan terms.

HECMs offer fixed or adjustable rates. Fixed rates require a lump-sum payout; adjustable rates (tied to SOFR or CMT) allow flexible payment options and are generally higher than traditional mortgages since no monthly payments are required.*

*The borrower must meet all loan obligations, including living in the property as the principal residence, maintaining the home, and paying property charges, including property taxes, fees, hazard insurance. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.

HECMs are FHA-insured for homeowners 62+ with a government lending limit and mortgage insurance requirement. HomeSafe is FOA’s proprietary jumbo reverse mortgage for homeowners 55+* who want to borrow up to $4 million without mortgage insurance or origination fees.

*For certain HomeSafe products only, excluding Massachusetts, New York, and Washington, where the minimum age is 60, and North Carolina and Texas where the minimum age is 62.

A HECM is repaid when the homeowner moves out, doesn’t meet the loan conditions, or passes away. The loan can be settled by selling the house and using the proceeds to repay the loan or repaying the loan using other assets if the borrower or heirs prefer to keep the house. Most importantly, the borrower or heirs won’t owe more than the home’s value when the loan becomes due and the home is sold. Learn more
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Explore your options, your way

Thousands of homeowners have used HECM to fund what’s next without giving up what they’ve built.

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