HUD’s ‘Home Equity Conversion Mortgages’ Website
“Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.”
About HECMs and Other Reverse Mortgages / “FHA Reverse Mortgages (HECMs) for Seniors”
“If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage program that enables you to withdraw a portion of your home’s equity.
You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.”
General HECM Frequently Asked Questions (including…)
- What is a reverse mortgage?
- Can I qualify for FHA’s HECM reverse mortgage?
- Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance?
- What types of homes are eligible?
- What are the differences between a reverse mortgage and a home equity loan?
- Will we have an estate that we can leave to heirs?
- How much money can I get from my home?
- Should I use an estate planning service to find a reverse mortgage lender?
- How do I receive my payments?
- What if I change my mind and no longer want the loan after I go to closing? How do I do this?
Lenders and Counselors
(All information is subject to change. Refer to the HUD Website for official information.