Reverse Mortgage (HECM)
For homeowners 62 and older: access your equity while staying in your home.
A reverse mortgage — most commonly the FHA-insured Home Equity Conversion Mortgage (HECM) — lets homeowners 62 and older convert part of their home equity into cash, a credit line, or monthly payouts. Instead of you making a monthly mortgage payment, the loan balance is repaid later — usually when you sell the home, move out, or pass away.
How it works
No required monthly mortgage payment
You don't make monthly principal-and-interest payments. You do remain responsible for property taxes, homeowners insurance, and keeping the home maintained — falling behind on those can put the loan in default.
You keep the title and stay in your home
You remain the owner as long as the home is your primary residence and you keep up with taxes, insurance, and upkeep. Any equity left after the loan is repaid belongs to you or your heirs.
Choose how you receive the money
Take a lump sum, fixed monthly payouts, a line of credit you draw on as needed, or a combination — whichever fits your retirement plan.
Independent counseling is built in
HECM borrowers complete a session with a HUD-approved housing counselor before the loan can proceed — an independent safeguard to make sure it's the right fit.
A good fit if you're…
- Homeowners 62+ with significant equity in their primary residence
- Supplementing retirement income
- Eliminating an existing monthly mortgage payment
This page is educational and doesn't constitute financial advice or a loan offer. Honest Loans is a lead-generation service, not a lender — program availability, rates, and terms come solely from independent lending partners and are subject to their approval and requirements.
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