Turn Home Equity Into Retirement Flexibility
A Home Equity Conversion Mortgage lets homeowners 62 and older convert a portion of their home equity into cash, tax-free, without giving up ownership or taking on a monthly mortgage payment.
A HECM, Explained Simply
A Home Equity Conversion Mortgage, or HECM, is a reverse mortgage insured by the FHA. Instead of you making monthly payments to a lender, the lender pays you, drawing from your home's equity, while you continue to live in and own the home. You remain responsible for property taxes, homeowners insurance, and basic upkeep. The loan is repaid, typically through the sale of the home, when the last remaining borrower moves out permanently or passes away.
Why Homeowners Consider a HECM
No Monthly Mortgage Payment
You're not required to make monthly principal and interest payments, freeing up cash flow in retirement, though you can choose to make payments voluntarily.
You Keep the Title
The home remains yours. A HECM doesn't transfer ownership to the lender, and heirs still inherit the property, typically settling the loan through sale or refinance.
Non-Recourse Protection
You or your heirs will never owe more than the home's value at the time it's sold, even if the loan balance has grown beyond that.
Tax-Free Proceeds
Funds you receive are loan proceeds, not income, so they're generally not taxed and typically don't affect Social Security benefits.
A Growing Line of Credit
If you choose the line-of-credit option, the unused portion can grow over time, giving you more access to funds the longer you wait to draw them.
A Sequence-of-Returns Buffer
Many financial planners use a HECM line of credit as a standby resource, drawing from it instead of an investment portfolio during a market downturn.
Payout Options
Lump Sum
A single, upfront draw. Common when paying off an existing mortgage or funding a specific, immediate need.
Line of Credit
Draw funds as needed, with the unused portion potentially growing over time.
Monthly Payments
A steady, predictable income stream, either for a set term or for as long as you remain in the home.
A Combination
Blend a smaller lump sum with an ongoing line of credit or monthly payments, tailored to your plan.
What It Generally Takes to Qualify
Eligibility is based on age, equity, and the home itself, not income or credit in the way a traditional mortgage is.
Youngest borrower on title
Must be your primary residence
Amount available depends on age, rates, and home value
Required before your application can proceed
What You Remain Responsible For
A HECM removes the monthly mortgage payment, but not your other obligations as a homeowner. You must continue paying property taxes and homeowners insurance, keep the home in reasonable repair, and live there as your primary residence. Falling behind on these can put the loan into default, which is why HUD requires independent counseling before you apply, to make sure this genuinely fits your broader financial picture, not just the immediate need.
What Homeowners Ask Most
Do I give up ownership of my home?
No. You keep the title and remain the owner. The loan is simply secured against your equity, and repaid when the home is eventually sold or no longer your primary residence.
What happens if the loan balance grows larger than my home's value?
Because a HECM is a non-recourse loan, you or your heirs will never owe more than the home is worth at the time it's sold, regardless of the loan balance.
Can my heirs keep the home?
Yes, typically by paying off or refinancing the loan balance, often using other assets or a new mortgage in their own name.
Can my home be held in a trust?
Often, yes. Certain trust structures qualify for HECM eligibility. We'll review your specific trust documents to confirm.
Is HUD counseling really required?
Yes, it's a required, independent step before your application can move forward, and it's genuinely useful, not just a formality. We'll help you schedule it.
See How This Fits Your Bigger Picture
No cost, no obligation — a conversation about whether a HECM makes sense for your specific situation and goals.
We've been helping people like you achieve their dream of homeownership for over 10 years.
This is a loan production office of United Lending Team, Inc.
United Lending Team DBA Clearview Equity Advisors
1050 Wilshire Drive Suite 300
Troy, MI 48084
© United Lending Team, Inc. 2026 copyright. All Right Reserved.
Copyright © 2026 | Ease Mortgage | NMLS #2273319 | (888) 650-3273
ULT, Inc. Licensed In: AL, AZ, AR, CA, CO, DC, FL, GA, ID, IL, IN, IA, KS, MD, MI, MN, MT, NE, NH, NJ, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WI, WY
Roland Scott Licensed In: CO
All rights reserved. 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.