Reverse Mortgage
Understand HECM reverse mortgages for eligible homeowners age 62 and older, required counseling, growing balances, property obligations, and repayment events.
A reverse mortgage lets eligible homeowners borrow against home equity, with repayment generally deferred while loan conditions are met. The most common type, the FHA-insured Home Equity Conversion Mortgage (HECM), requires borrowers to be at least 62. Other proprietary products can have different rules.
Potential benefits
- A HECM generally does not require monthly principal-and-interest payments while the borrower meets occupancy and other loan obligations.
- Eligible proceeds may be available through payment options such as a line of credit or scheduled payments, depending on the loan.
- The borrower retains ownership of the home, subject to the mortgage lien and continuing responsibilities.
Eligibility and documentation
HECM borrowers must complete counseling with a HUD-approved counselor and meet equity, property, and financial-assessment requirements. The home must be a principal residence. Available proceeds depend on factors including age, interest rates, home value, and existing liens; an existing mortgage generally must be paid off at closing.
Costs and tradeoffs
Interest and fees add to the balance over time and can reduce equity available to you or your heirs. You must keep paying property taxes, insurance, and applicable property charges and maintain the home; failure can lead to foreclosure. Repayment is generally triggered by sale, death, or loss of principal-residence status, subject to applicable spouse protections. Discuss household members and inheritance plans with the counselor.
Is this program right for you?
Evaluate a reverse mortgage alongside downsizing, a traditional home-equity loan, and other resources. It may be unsuitable if you expect to move soon or cannot cover ongoing property expenses. It is a loan, not a government benefit or free income.
Continue your research
This is general education, not a commitment to lend or confirmation that Home1st Financial offers every product described. Availability depends on participating lenders, property location, and verified licensing. Eligibility, rates, fees, and terms require a complete application and lender approval.