HECM Loan

Unlock the financial potential of your home with a Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage.

A Home Equity Conversion Mortgage (HECM), or reverse mortgage, allows you to access a portion of your home’s equity without having to make monthly mortgage payments.1 If you are 62 years of age or older and have sufficient home equity, you may be able to get cash to:

Pay off your existing mortgage
Pay off medical bills, vehicle loans or other debts
Improve your monthly cash flow
Fund home repairs or dream renovations
Build a “safety net” for unplanned expenses

HECM Loan Benefits
Whether you are planning on retiring soon or have already started retirement, take a moment to think about how you envision your retirement lifestyle. Even if you have planned, saved, and invested carefully, you may have less than you had expected to meet your goals. Here are some of the ways a reverse mortgage could help:

Eliminates your existing monthly mortgage payments1
Allows you to stay in your home and maintain the title1
Loan proceeds are not taxed as income
Heirs inherit any remaining equity after paying off the HECM loan

Eligibility
To be eligible for a HECM loan, some key requirements are:

The youngest borrower on title must be at least 62 years of age
You must live in your home as your primary residence and have sufficient equity
You must be able to pay off your existing mortgage using the HECM loan proceeds
It must be a single-family, two-to-four unit owner-occupied home, townhouse, approved condominium or manufactured home
You must meet financial eligibility criteria as established by HUD

Additional Requirements
Once you obtain your HECM loan, you must continue to meet the following conditions to maintain your loan in good standing:

Maintain your home according to FHA requirements
Continue to pay property taxes and homeowners insurance
Continue to own and live in your home as your primary residence
The loan becomes due and payable if you fail to meet any of the above obligations or the last borrower or non-borrowing spouse passes away. The heirs must repay the loan in order to inherit the property. Failure to repay the loan may result in foreclosure

Call or click to connect with a Liberty Loan Advisor and review your reverse mortgage options.

This is not a commitment to lend. Any equity used in a refinance may decrease the amount of equity available to you in the future. Application approval is subject to complete underwriting review based on program guidelines; not all applicants may qualify. Limitations may apply. Not available for properties in Hawaii.

Your current mortgage(s) and any other existing liens against the property must be paid off at or before closing. You must live in the home as your primary residence, continue to pay required property taxes, and homeowners insurance, and maintain the home according to FHA HECM requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.