How it works
A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage available to eligible homeowners age 62 and older. Instead of making a monthly mortgage payment, you can convert a portion of your home equity into funds you can access — often to pay off an existing mortgage, add flexibility to a retirement plan, or buy a home with a HECM for Purchase. You keep title to the home, and property taxes, insurance, any applicable HOA dues and ongoing maintenance remain your responsibility. Eligibility, available proceeds and terms depend on age, the property, current interest rates and a financial assessment, so this is a conversation rather than a calculator.
What defines this program
- Available to eligible homeowners age 62 and older
- Can be used to pay off an existing mortgage or access equity
- HECM for Purchase can finance the next home
- No monthly mortgage payment required while program requirements are met
- HUD-approved counseling is part of the process
Common fits
Questions borrowers ask
Do I still own my home?
Yes. You remain on title. The loan is repaid when the home is sold or the loan otherwise becomes due, and you stay responsible for property taxes, insurance, any HOA dues and keeping the home maintained. Not meeting those obligations can cause the loan to become due.
Is a reverse mortgage right for everyone?
No, and I will tell you honestly if I do not think it fits. It works well for some households and not at all for others, depending on how long you plan to stay, your other resources, and what you want to leave behind. Independent HUD-approved counseling is required before moving forward, which is a good thing.
Can I use a HECM to buy a home?
In many cases, yes — that is HECM for Purchase. You bring a required down payment from your own funds and the HECM covers the balance, with no required monthly mortgage payment as long as program requirements are met. Whether you qualify depends on age, the property and a financial assessment.
How much could I access?
It depends on the age of the youngest borrower, the home's value and lending limits, current rates and any existing mortgage payoff — so there is no honest single answer to publish here. I run your actual numbers and show you what the program looks like for your situation, along with the alternatives worth comparing.
What will my terms look like?
Pricing, structure and qualifying guidelines vary by lender, property, occupancy and your full financial picture — and they change often. Rather than publish numbers that may not apply to you, I review your scenario directly and walk you through the real options available for it.
This page intentionally avoids quoting rates, down payments, credit-score minimums or underwriting requirements. Guidelines differ by lender, property type, occupancy and borrower profile — and they change. April Ramker reviews your scenario and tells you what applies to it.