What Is a Reverse Mortgage?

A reverse mortgage (also called a HECM, Home Equity Conversion Mortgage) is a federally-insured loan that lets homeowners 62+ convert home equity into cash without selling the home.

How It Works

• You borrow against your home equity
• No monthly payments required
• The loan is repaid when you sell, move permanently, or pass away

HECM vs. HELOC

Unlike a Home Equity Line of Credit (HELOC), a reverse mortgage:

• Requires NO monthly payments
• Is federally insured by FHA
• Has a non-recourse feature — you never owe more than the home is worth

Compliance Notice: Borrowers must be 62 years of age or older. HUD-approved counseling is required. A reverse mortgage is not a government benefit. The loan becomes due and payable when the last surviving borrower no longer occupies the home as their primary residence or fails to meet the obligations of the mortgage.