Unlock your home’s equity
and open the door to possibilities in retirement.
What is a “HECM” Reverse Mortgage Loan?
Specifically designed for homeowners aged 62+, a reverse mortgage is a home loan that allows borrowers to convert a portion of the equity they have in their home into cash. Home Equity Conversion Mortgages (or HECMs) are by far and away the most common type of reverse mortgage. HECMs are the only reverse mortgages insured by the Federal Housing Administration (FHA), and you can only get one through an FHA-approved lender like Fairway.
Curious what you may qualify for? Use our free reverse mortgage calculator!
Key Benefits:
Increased cash flow.
You can access cash from a portion of your home equity without incurring income tax* (generally, it won’t affect your Social Security and Basic Medicare benefits). You can use the funds how you want.
* This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation.
Flexible repayment feature.
You have the option to repay as much or as little of the loan balance each month as you would like, or you can make no monthly mortgages payments at all. Of course, you must still maintain the home and pay homeowners insurance and property taxes, just like a traditional mortgage.
The FHA guarantees no repayment of the loan is required until the last borrower moves out or passes away. When you move out of your home, you or your estate has up to 12 months to repay the loan balance, which is typically achieved by selling the home.
Non-recourse feature.
The FHA guarantees that if the balance on the loan exceeds the home value at the time the home is sold, neither you nor your heirs will be responsible for paying the deficit (the FHA will pay it). If there are excess proceeds from the sale of your home, you (or your heirs) would receive them.
You remain on the title and you own the home.
You can sell your home at any time.
Line of credit growth feature.
With a HECM reverse mortgage line of credit, the unused portion of the line of credit will grow each month at the same rate as the loan balance. In other words, you will have access to even more funds over time, regardless of home value.
