A Reverse Mortgage also known as a Home Equity Conversion Mortgage (HECM) is a mortgage program that allows you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. 

Below are some Frequently Asked Questions on Reverse Mortgages as well as links that can provide additional information regarding HECMs.

1.) Can I qualify for FHA's HECM reverse mortgage? 

• To be eligible for the FHA HECM, the FHA requires that you be 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from your reverse loan and you must live in the home.  You are also required to receive consumer information from an approved HECM counselor prior to being approved for the loan.

2.) Can I apply if I didn't purchase my present home with FHA mortgage insurance? 

• Yes, it doesn't matter if you didn't purchase with an FHA mortgage. Your new HECM will be FHA-insured.

3.) What types of homes are eligible? 

• Single Family home or a 1-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

4.) Will I still have an estate that I can leave to my heirs? 

• When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. Anything remaining belongs to you and your heirs.

5.) How much money can I get from my home? 

• The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less.

6.)Should I use an estate planning service to find a reverse mortgage? 

• FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA lender. FHA provides this service for FREE, and HUD-approved counseling agencies are available for free or at a very low cost. For more information, search online or call 1.800.569.4287

You can also click here for more information on HECMs from HUD.