A Home Equity Conversion Mortgage (HECM) — the most common reverse mortgage — is an FHA-insured loan for homeowners 62 and older. Instead of you paying the lender each month, the lender pays you. You can receive the money as a lump sum, monthly payments, a line of credit, or a combination. The loan doesn't have to be repaid until you sell, move out, or pass away. No monthly mortgage payments are required — but you must continue paying property taxes, homeowners insurance, and maintaining the home.
| Requirement | Details |
|---|---|
| Age | All borrowers must be 62+ |
| Home Type | Primary residence: single-family, 2-4 unit (if you occupy one), FHA-approved condos, manufactured homes |
| Equity | Significant equity (typically 50%+). The more equity, the more you can borrow. |
| Counseling | Mandatory HUD-approved counseling session before you can apply |
| Financial Assessment | Must demonstrate ability to pay property taxes, insurance, and maintenance |