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This section applies to you if you are at least age 62.
Home Equity Conversion Mortgage (HECMs) are the most popular reverse mortgage available. They are federally insured and offer certain borrower protections. Seniors who either own their homes outright or have low mortgage balances can take out reverse mortgages and convert their equity into cash — either as a lump sum, monthly payment or line of credit, or some combination of the three.
There are no income or credit requirements, and the loan has no monthly payment.
How it Works
The bank uses your home as collateral and makes monthly payments to you or establishes a line of credit that you can draw upon. The payments to you are based on your age, the home’s value, interest rates, and your marital status. Unlike a conventional loan, you don’t have to make payments to the bank. Principal, interest, and fees simply accrue against the home’s value and are paid when you sell your home.