Homeowner Equity Lending Program

Frequently Asked Questions


What is a HECM Loan?

A Home Equity Conversion Mortgage, or reverse mortgage, enables homeowners age 62 or older to convert part of the equity in their homes into tax-free income without having to sell the home, give up title or take on an new monthly mortgage payment.

How much money will I receive?

The amount of money you get from a HECM depends on your age (age of the youngest borrower in the case of couples), appraised home value, current interest rates and the lending limit in your area.

Does my home qualify?

Eligible property types include: single family homes, condominiums, townhomes, manufactured homes and 2- 4 unit properties (as long as your primary residence is one of the units).

Will I lose my government benefits if I get a Reverse Mortgage?

A HECM does not affect regular Social Security or Medicare benefits.

Are their any special requirements?

There are no special income or medical requirements. If you decide to proceed with a HECM transaction, you will be required to obtain counseling from an independent HUD approved counseling agency.

Why do I need counseling?

You may qualify even if you still owe money on an existing mortgage. The HECM will first pay off your existing loan (so you won’t have a monthly mortgage payment) and pay you the balance of any remaining HECM funds.

What if I have an existing mortgage?

You may qualify even if you still owe money on an existing mortgage. The HECM will first pay off your existing loan (so you won’t have a monthly mortgage payment) and pay you the balance of any remaining HECM funds.

How do I receive the proceeds from a HECM?

You can choose to receive the money all at once as a lump sum, as fixed monthly payments to you (for up to life), a line of credit or any combination of the these options.

How can I use the proceeds from a HECM?

You can use the money in any way you wish, whether it’s to supplement retirement income, repair or modify you home, pay for health care, retire existing debts, buy a new car, take a vacation or make cash gifts to you children or grandchildren.