As a senior citizen how can I convert the equity in my home into income?

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

Home Equity Conversion Mortgages for Seniors

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


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03701