Home Equity Conversion Mortgages (HECM) also known as reverse mortgages, can be used to convert the equity in your home into monthly income or lines of credit.
To be eligible for a reverse mortgage all homeowners must be 62 years of age or older, own their home outright or have a small loan balance that can be paid with the proceeds of the HECM loan and must receive counseling from a HUD-approved housing counseling agency or entity.
The amount that can be borrowed depends on the age of the youngest borrower or non-borrowing spouse, the interest rate, other loan fees and the lesser of the appraised value of the home or FHA's mortgage limit for the area. Generally, the more valuable the home is, the older the borrowers are and the lower the interest, the more that can be borrowed.
For more information on HUD's HECM mortgage visit the following websites:
How the HECM Program Works: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmabou
Home Equity Conversion Mortgages for Seniors: https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome
To find a HUD-approved HECM Housing Counselor in your area visit:
https://entp.hud.gov/idapp/html/hecm_agency_look.cfm or call 1-800-569-4287.
To find an FHA Approved Lender visit https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist