A Home Equity Conversion Mortgage lets homeowners 62 and older convert equity into a lump sum, monthly payments, or a growing line of credit, with no required monthly principal and interest payment.
62
Lump sum, term, tenure, or line
None
HUD counseling required
No. You keep title. The loan becomes due when the last borrower permanently moves out, sells, or passes away, and you must stay current on taxes, insurance, and maintenance.
HECM loans are non-recourse. Heirs can repay the balance to keep the home or sell it, and they are never liable beyond the home's value.
A 71-year-old homeowner with a small remaining mortgage balance and a fixed retirement income.
The existing loan was paid off, monthly cash flow improved immediately, and the remaining proceeds stayed available as a growing line.
Examples are illustrative composites of typical files, not offers of credit or guarantees of terms. Your actual options depend on your credit, income, property, and current market pricing.