Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender. The HECM is FHA's reverse mortgage program that enables you to withdraw a portion of your home's equity. The amount that will be available for withdrawal varies by borrower and depends on:
- Age of the youngest borrower or eligible non-borrowing spouse;
- Current interest rate; and
- Lesser of appraised value or the HECM FHA mortgage limit or the sales price.
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing. To learn more about FHA's HECM program:
- General Information
- To find a reverse mortgage counselor near you, search the HECM Counselor Roster or call (800) 569-4287.
- To find a reverse mortgage counselor that provides telephone and face-to-face counseling nationwide, use the HUD Intermediaries Providing HECM Counseling Nationwide list.
- To find a reverse mortgage lender, use the HUD Lender List Search.
Click here to access the online FAQ site.
- HUD's Seniors page
- Home Equity Conversion Mortgage: Homeowner (Fact Sheet)
- Important Information for Home Equity Conversion Mortgage (HECM) holders and their spouses (Card)
- Inheriting a Home Secured by an FHA-insured Home Equity Conversion Mortgage (Fact Sheet)
- What you need to know if you inherit a home that is security for an FHA Home Equity Conversion Mortgage (Card)
- HECM for Lenders page
- Home Equity Conversion Mortgage (HECM) Provisions for the Non-Borrowing Spouse Following the Death of the HECM Borrower: Lender Overview (Fact Sheet)
- Counseling: Avoid Reverse Mortgage Missteps
- Home Equity Conversion Mortgage Provisions for the Non-Borrowing Spouse Following the Death of the HECM Borrower: Counselor Provisions (Fact Sheet)