HECM mortgage questions, answered

A Home Equity Conversion Mortgage (HECM) is a HECM mortgage insured by the FHA. It lets homeowners 62 and older turn part of their home equity into money they can use, while they keep living in and owning their home.

Yes. You keep the title to your home. The lender does not take ownership. You remain responsible for property taxes, insurance, HOA dues and upkeep.

No monthly mortgage payment is required. You can choose to make payments if you wish. You must still pay property taxes, homeowners insurance and any HOA dues, keep the home maintained, and live there as your primary residence.

Generally: the youngest borrower is at least 62 (some jumbo programs may have different age requirements; ask Jason), the home is your primary residence, you have meaningful equity, and you can show you are able to keep paying taxes and insurance. HUD-approved counseling is required for a HECM.

Your heirs inherit the home. When the last borrower leaves the home, the loan becomes due. Heirs can keep the home by paying off the loan (or 95% of appraised value, whichever is less, for a HECM), sell it and keep any remaining equity, or hand it to the lender. With a HECM, they never owe more than the home is worth. Read the full guide for families.

Loan proceeds generally are not considered income, but I'm not a tax advisor, so please consult a tax professional. Social Security and Medicare are generally not affected; need-based benefits such as Medicaid or SSI may be. Ask a benefits professional about your situation.

Costs include FHA mortgage insurance, an origination fee, third-party closing costs and interest. Most costs can be paid from the loan proceeds. I'll walk you through every number on paper before you decide anything.

Please! Many of my conversations include a son, daughter or trusted advisor. I'm happy to meet together, by phone, video or in person.

Yes, with a HECM for Purchase. You make a larger down payment and the HECM mortgage covers the rest, with no monthly mortgage payment required. See the HECM for Purchase page.

For 2026 the FHA HECM maximum claim amount is $1,249,125. For higher-value homes, a jumbo (proprietary) home equity conversion loan may be an option. See Higher-Value Homes.