The HECM Loan — The FHA-Insured Reverse Mortgage
The most widely used reverse mortgage in the country. Government-insured, flexible, and designed to protect you and your family.
Your home has been working for decades. Now it can work for you.
HECM stands for Home Equity Conversion Mortgage. It is the FHA-insured reverse mortgage that allows qualified homeowners 62 and older to access part of the value of their home. Home equity can be accessed in a number of ways, enabling greater cash flow without a monthly mortgage payment.
After you get a HECM on your primary residence, repayment is not due until the home is sold, the last borrower passes away, permanently leaves the home, or does not comply with the loan terms. You keep your home. You keep your title.
Reverse mortgage borrowers retain ownership of their home — it is yours just as it was before, but now you can put the equity that has been building for years to work for you.
"My house has been my home for most of my life. I can't leave, but I can't afford to stay."— A sentiment Jenn hears often. A HECM loan can change that story.
Get a no-obligation Reverse Mortgage evaluation and quote today.
What FHA insurance actually means for you.
HECM loans are insured by the Federal Housing Administration. FHA requires a Mortgage Insurance Premium collected at closing and during the life of the loan — and in exchange, it provides you and your heirs with serious protections.
You are never required to pay more than the home's fair market value — even if the loan balance exceeds it.
If the loan balance exceeds the home's value, FHA reimburses the lender for the difference when the estate sells the home.
Payments made to you by the lender are insured by FHA. If the lender is ever unable to continue making payments, FHA steps in.
Even if the loan balance grows beyond the home's market value, the lender cannot take title. You can stay as long as basic loan obligations are met.
When the reverse mortgage becomes due, heirs may choose to keep the home by paying 95% of the appraised value, less customary closing costs and real estate commissions. Any remaining equity belongs to you or your estate.
The funds are yours to use however you choose.
There are no restrictions on how you spend your HECM proceeds. Here are some of the most common uses.
Eliminate Your Mortgage
Pay off your existing mortgage and free up cash flow every month.
Healthcare Costs
Cover medical expenses, in-home care, or long-term care needs.
Home Improvements
Make renovations, upgrades, or accessibility modifications to stay comfortable.
Supplement Retirement
Add a reliable monthly income stream to extend your retirement savings.
Growing Line of Credit
Keep funds available for future needs — unused credit grows over time.
Anything Else
Travel, help family members, pay bills — it is entirely up to you.
HUD counseling is required — and that's a good thing.
Before moving forward with a HECM, federal law requires a counseling session with an independent HUD-approved third-party counselor. This protects you by making sure you have all the facts from an unbiased source before incurring any loan costs.
The counseling fee typically runs $125 to $150. Some agencies will waive the fee for applicants who qualify. You can find a HUD-approved counseling agency near you by calling 1-800-569-4287 toll free.
Once counseling is complete, your counselor will issue a Certificate of HECM Counseling — and only then can your application move into processing and underwriting.
1 This advertisement does not constitute financial advice. Please consult a financial advisor regarding your specific situation. There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrowers are still responsible for paying property taxes, homeowners insurance, and maintaining the property to HUD standards. Failure to do so could make the loan due and payable. Credit is subject to age, income standards, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.
2 Borrowers should seek professional tax advice regarding reverse mortgage proceeds. Proceeds from a reverse mortgage are generally not subject to personal income taxation, but borrowers should seek tax advice on how proceeds may affect government needs-based programs such as Medicaid and Medi-Cal.
Ready to find out what you qualify for?
No pressure, no obligation. Just an honest look at whether a HECM loan makes sense for your situation.