HECM Loans (Home Equity Conversion Mortgage)
The Most Popular Reverse Mortgage Option, Backed by the Federal Government
What Is a HECM Loan?
A Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage in the U.S., insured by the Federal Housing Administration (FHA). It allows homeowners aged 62 and older to convert a portion of their home’s equity into tax-free cash—without selling their home or making monthly mortgage payments.
With a HECM, homeowners can stay in their homes, maintain ownership, and use their equity to support their retirement needs.
Key Features of HECM Loans
- Federally Insured by the FHA
- Available to Homeowners 62+
- No Required Monthly Mortgage Payments
- Flexible Payout Options (lump sum, line of credit, monthly payments)
- Non-Recourse Loan – You or your heirs never owe more than the home’s value
- Mandatory HUD-Approved Counseling
This was the best thing I ever did. Dealing with Todd Woodcock was wonderful; he walked me through it and gave me lots of information. Questions were answered anytime with no pressure. I contacted my Financial Advisor and with counsellors they help you to know if it's right for you. And that you understand it all. Now, no more worries about taxes and insurance.
I HIGHLY RECOMEND TODD WOODCOCK. HAVE PEACE OF MIND NOW!
I HIGHLY RECOMEND TODD WOODCOCK. HAVE PEACE OF MIND NOW!
Todd was professional, communicative, and an expert in this field. He did an amazing job and made the reverse mortgage process a pleasurable experience.
Todd went above and beyond to assistant my parents with their reverse mortgage. He was patient and explained the process from beginning to end. I'd recommend Todd to anyone exploring the possibility of a reverse mortgage. Definite 5 star experience.
If you are considering a reverse mortgage, then look no further than Todd Woodcock, certified reverse mortgage professional! He is extremely knowledgeable, explains everything carefully and thoroughly, is very prompt with responses and answers all your questions! He makes his clients his #1 priority! I recommend him highly. In fact, I run a lifelong learning center in Florida, and I am bringing him to my school to give a workshop on reverse mortgages.
How Does a HECM Work?
Eligibility
- Age 62 or older
- Primary residence must be a single-family home, FHA-approved condo, or multi-unit property (up to 4 units)
- Must have sufficient home equity
- Must live in the home as your primary residence
- Must be able to pay property taxes, insurance, and maintenance
As an adult child, this can bring peace of mind knowing your parent has the resources they need while preserving their dignity and independence.
Application & Counseling
- Homeowners must attend mandatory HUD-approved counseling to understand the program
Loan Disbursement Options
- Lump Sum (fixed-rate option)
- Monthly Payments (tenure or term)
- Line of Credit (grows over time)
- Or a combination of the above