If you’re 62+ and would like greater financial security and flexibility, learn a little bit about the Home Equity Conversion Mortgage, or HECM.
HECMs enable homeowners to access their home equity, continue to live in and own the home, and access a host of other benefits that traditional loans like HELOCs can’t deliver.
If you’d like greater cash flow in retirement and new possibilities, make sure to watch this quick video or read the transcript below.
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Video Transcription of “What is a HECM Reverse Mortgage and How Does it Work?“

For years, your home has been at the center of your life’s best memories. Now, at 62 or older, you can transform your home’s equity into financial flexibility, helping you enjoy the retirement you’ve always envisioned.

Meet the Home Equity Conversion Mortgage, or HECM, the most popular reverse mortgage and the only one insured by the Federal Housing Administration. A HECM allows consumers 62 and older to access a portion of their home’s value while continuing to live in and own the home they love.

With a HECM, there are no required monthly mortgage payments. Just cover essential property charges like taxes and insurance. You choose how to receive your funds: a lump sum, fixed monthly payouts, a flexible line of credit, or a combination of monthly payouts and a line of credit. Interest and mortgage insurance premiums are added to the balance over time with repayment deferred. Want to pay it down? You can make voluntary prepayments to help manage your balance.

A HECM helps unlock new possibilities. Use the loan proceeds to pay off your existing mortgage at closing, reducing your fixed monthly expenses. And the rest of the funds? That’s up to you. Maybe you want to renovate your home to age in place comfortably, pay off high-interest debt, cover medical or long-term care costs, or simply enjoy financial freedom for travel and personal goals. Some even use it to create a financial safety net for added peace of mind.

A HECM loan becomes due when the last borrower moves out permanently, is unable to live in the home for 12 consecutive months due to illness, or passes away. The loan is typically repaid by selling the home. But here’s the good news: HECM loans are non-recourse. You or your heirs will never owe more than the home’s value at the time of sale. FHA insurance covers any shortfall, ensuring financial protection for you and for your loved ones.

Your heirs have options when it comes to your home. If they would like to keep it, they can pay off the loan, usually by refinancing. If the loan balance is higher than 95% of the home’s value, they may qualify for a short payoff at 95% of the home’s value. If they don’t want to keep the home, they can sell it and keep any leftover proceeds. If the loan balance is more than the home’s value, they can walk away with no personal liability by signing a deed in lieu of foreclosure.

A reverse mortgage isn’t for everyone, but for many, it’s a powerful home loan that turns home equity into new opportunities. Your home has been your haven for years—now let it pave the way for your future.

Is a Reverse Mortgage Right for You?

I understand that each of our customers has unique needs, and sometimes a reverse mortgage loan is the best fit — and sometimes it is not. If you’re interested in learning more about reverse mortgages and whether one might be a good fit for your situation (or a loved one’s situation), I can help.
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Please note, not all condos are eligible for Reverse Mortgage Loans.

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This site is not authorized by the New York State Department of Financial Services. No mortgage loan applications for properties located in the state of New York will be accepted through this site. Copyright©2026 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289 http://nmlsconsumeraccess.org/EntityDetails.aspx/company/2289. MA Loan Originator License #MLO1439499. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity.
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