Reverse Mortgage · HECM · For Homeowners 62 and Better · NMLS #2656628

Retire in Your Home, or Into a Better One, Without a Monthly Mortgage Payment.

A reverse mortgage is a great loan program for individuals looking to retire who need to free up the equity in their home. If you are 62 or older, a HECM can eliminate your monthly mortgage payment, supplement your retirement income, or help you buy a more comfortable home while keeping title in your name. You remain responsible for property taxes, insurance, and upkeep.

Book a Call Read the Full HECM Guide

Age 62+ homeownersNo monthly payment requiredKeep your home & titleFHA-insured HECM

Ken Powell

Mortgage Loan Officer · Fairway Home Mortgage

NMLS #2656628 · Equal Housing Lender

Key Benefits

What a Reverse Mortgage Can Do for You.

Homeowners who have built equity over decades have options most people are not aware of. Ken's job is to explain them clearly so you can make an informed decision.

Eliminate Your Mortgage Payment

Replace your current monthly mortgage payment with zero, keeping more income for healthcare, retirement, and daily living. You still pay property taxes, insurance, and upkeep.

Stay in Your Home

You retain title and full ownership. The loan is repaid when you sell, permanently move out, or pass away.

Primary residence

Access Equity Tax-Free

Receive proceeds as a lump sum, monthly payments, a growing line of credit, or a combination. Consult your CPA on tax treatment.

FHA Non-Recourse Protection

You and your heirs never owe more than the home's value at time of repayment, even if the loan balance grows beyond it.

Growing Line of Credit

An unused HECM line of credit grows over time at the same rate as the loan, a unique benefit no other product offers.

HECM for Purchase

Buy a new home using reverse mortgage proceeds. Move closer to family or rightsize into a home that fits this stage of life, with no monthly mortgage payment.

The Program

What Is a Home Equity Conversion Mortgage (HECM)?

The HECM is the federally insured reverse mortgage program. It launched in 1989, has been continually refined to strengthen borrower safeguards, and is the most used reverse mortgage in the United States.

Who qualifies for a HECM

✓Homeowners age 62 and older
✓Sufficient credit, income, and home equity (typically 50% to 75% equity, depending on age and loan terms)
✓Must live in the home as a primary residence and maintain it
✓Eligible properties include single-family homes, 2 to 4 unit properties (owner occupying one unit), townhomes, HUD-approved condos, PUDs, modular homes, and manufactured homes that meet FHA requirements

How you can take your proceeds

1.A single-disbursement lump sum
2.Fixed monthly advances (for a set term, or for as long as you live in the home)
3.A line of credit you draw on when you need it
4.A combination of all three

Which structure fits best depends on your goals. Ken walks through the numbers for each option so you can compare them side by side.

The HECM line of credit grows over time

Unused funds in a HECM line of credit grow at a compounding rate equal to the loan's current interest rate plus the FHA annual mortgage insurance premium (currently 0.5%). Growth compounds monthly. The longer the funds sit untouched, the larger your future borrowing power becomes.

Unlike a traditional HELOC, the HECM line of credit cannot be capped, frozen, or canceled by the lender, even in a market downturn. That makes it a stable financial safety net that strengthens with time.

One more point worth understanding: waiting does not always mean accessing more equity later. Your principal limit is based on the age of the youngest borrower, the expected interest rate, and the lesser of your home value or the HECM lending limit ($1,249,125 for 2026). Only your age increases predictably. Rates and home values move both ways, so establishing the line earlier lets the growth compound while you wait.

HECM for Purchase (H4P)

Yes, a Reverse Mortgage Can Buy Your Next Home.

Do not stay stuck in a home with stairs you no longer want, rooms you no longer use, or a mortgage payment you no longer need. The HECM for Purchase program is a great tool for seniors who want to buy a rambler or single-level home without using up all of their cash and without taking on a large monthly mortgage payment.

How H4P works

You put down roughly 45% to 70% of the purchase price from your own funds (the exact amount depends on your age, current interest rates, and the lesser of the appraised value or purchase price). The HECM covers the rest, and you make no monthly mortgage payments as long as you live in the home, maintain it, and pay property taxes and insurance.

Compared to paying all cash, you keep more of your retirement assets to use as you wish. Compared to a traditional mortgage, you free your monthly budget from a required payment.

Common reasons people use it

✓Rightsize into a single-level home that is safer and easier to live in
✓Move closer to children and grandchildren
✓Preserve savings and investments instead of paying all cash
✓Keep monthly cash flow free of a required mortgage payment

Loan Maturity

When Is the Loan Repaid, and What Happens for Your Heirs?

The HECM becomes due and payable when you sell the home, transfer the title, the last surviving borrower moves out permanently or passes away, or the loan terms go into default (for example, unpaid property taxes or insurance). The loan is typically satisfied through the sale of the home, and because HECMs are non-recourse loans, you or your heirs can never owe more than the home is worth at the time of loan maturity.

Do heirs want to keep the home?	If there is equity left	If there is no equity left
Yes	Pay off or refinance the loan balance	Keep the home with a short payoff of 95% of the appraised home value
No	Sell the home and keep any remaining equity	Sign a deed-in-lieu of foreclosure and walk away with no debt owed

Built-in consumer protections

The HECM program includes mandatory independent counseling before you apply, restrictions on cross-selling other financial products, limits on first-year disbursements, a credit and income review to confirm the loan is sustainable, protections for a non-borrowing spouse, and the non-recourse guarantee. These safeguards exist so the loan works for you long term, not just at closing.

Right Fit, and When It's Not

A Reverse Mortgage Is a Powerful Tool. It Belongs in the Right Situation.

Good fit if you...

✓Are 62+ and own your home outright or with significant equity
✓Plan to stay in your home for 5+ years
✓Want to eliminate an existing monthly mortgage payment
✓Need supplemental retirement income
✓Want to fund home improvements, healthcare, or long-term care
✓Are considering downsizing (HECM for Purchase)

May not be ideal if you...

✗Plan to move or sell within 1 to 2 years
✗Cannot maintain property taxes, insurance, and upkeep
✗Want to leave the home completely free and clear to heirs
✗Have a spouse under 62 (though non-borrowing spouse protections exist)
✗Rely on the home as the sole bequest to children

The Process

How a Reverse Mortgage Works: HUD Counseling to Funding.

Consultation

A no-obligation equity analysis. Ken runs your numbers and explains every option and outcome clearly.

HUD Counseling

Required by federal law. An independent HUD-approved counselor reviews the program with you, at no cost.

Application & Appraisal

Ken gathers your documents and orders the FHA appraisal. The appraisal confirms your home's current value.

✓

Close & Fund

3-day right of rescission after closing. Funds disbursed per your chosen payment method.

Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Youngest borrower must be at least 62 years old. Monthly advances may affect eligibility for some other programs. Interest is not deductible until you repay all or part of the reverse mortgage loan. At the conclusion of the loan, some or all of the equity may no longer belong to you. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Fairway NMLS #2289.

FAQ

Reverse Mortgage Questions, Answered Honestly.

Will the bank own my home?+

No. You retain title and full ownership throughout the life of the loan. The lender holds a lien, just like a regular mortgage. You remain the owner.

What happens to my home when I pass away?+

Your heirs have options: sell the home and pay off the reverse mortgage balance (keeping any remaining equity), refinance into a conventional mortgage to keep the home, or deed the home to the lender if they prefer not to deal with the loan.

Do I pay taxes on the money I receive?+

Generally no, reverse mortgage proceeds are loan advances, not income. However, proceeds may affect eligibility for Medicaid or SSI. Always consult a CPA or estate planning attorney.

What if the loan balance exceeds my home's value?+

The FHA HECM is a non-recourse loan. Neither you nor your heirs can ever owe more than the home's appraised value at repayment. FHA insurance covers any shortfall.

Can I still leave my home to my children?+

Yes, if your home is worth more than the reverse mortgage balance at the time of your passing, that equity belongs to your estate and your heirs.

What are the costs of a reverse mortgage?+

Like any FHA loan, there is an upfront MIP (2%), an ongoing annual MIP (0.5%), origination fees, and standard closing costs. All can typically be financed into the loan. Ken provides a full fee breakdown during your consultation.