The HECM Program
Loan Options
The HECM Program
Don’t fall behind on your finances.
Lighten the load with a HECM.
The Home Equity Conversion Mortgage (HECM) is a federally-insured program created by the Federal Housing Administration. It is the most common type of reverse mortgage with several safeguards in place to ensure you are protected.
Key Product Features
- Receive tax-free monthly payments
- Draw funds on demand
- Remain in your home for life
- No required mortgage payments
- Only pay property taxes, insurance and maintenance
What is a reverse mortgage?
A reverse mortgage is a type of loan that allows homeowners to access their home equity and turn it into cash. A reverse mortgage offers the unique opportunity for a homeowner to use their home equity without incurring a monthly mortgage payment or selling their home.
Why HECM?
Life is easier with a HECM
Income can be reduced or limited in retirement, which may make mortgage payments a greater burden than many homeowners realize. While you are still required to maintain your home, a HECM does not require you to make monthly mortgage payments. You have the freedom to skip a mortgage payment or eliminate mortgage payments entirely, providing additional control over your cash flow.
A Smart Choice.
The below table illustrates what your cash flow could look like with a HECM. When comparing the amount leftover during retirement with a traditional mortgage (in red) and the amount left over with a reverse mortgage (in green), you can see how a HECM can help you manage your monthly expenses and avoid unnecessary financial stress.
| Before Retirement | During Retirement | Retirement with a Reverse Mortgage | |
|---|---|---|---|
| Income | $4,000 | $2,500 | $2,500 |
| Monthly Mortgage Payment | $2,000 | $2,000 | * |
| Groceries | $500 | $500 | $500 |
| Utilities | $250 | $250 | $250 |
| Gas | $100 | $100 | $100 |
| Auto Loan | $300 | $300 | $300 |
| Disposable Income | $850 | -$650 | $1,350 |
*As with any mortgage, you must continue to make payments for property taxes, insurance, and maintenance, as well as comply with the loan terms.
Speak to a licensed specialist
Our team of dedicated professionals are available to assist you.
