Home Equity Conversion Mortgage (HECM)


What is a Home Equity Conversion Mortgage?

It’s a mortgage that allows homeowners 62 years and older to access a portion of the equity in their homes for use in retirement. HECMs are insured by the Federal Housing Administration (FHA). Note that not all reverse mortgages are federally insured.

What Are The Benefits of a HECM loan?

A HECM from CrossCountry Mortgage, Inc. can provide you with the following benefits:

Eligible Borrowers and Requirements of a Reverse Mortgage

You must meet the following criteria to be eligible for a reverse mortgage:

Eligibility Properties

HECMs follow FHA property eligibility standards, so your home must be one of the following:

Reverse Mortgage Considerations

Mortgage Counseling

Before you apply for a HECM, you must first consult a HUD housing counselor. This will help you determine whether a HECM is right for your situation. Contact us for a list of counseling agencies.

How Repayment Works

Unlike a traditional mortgage in which you make monthly payments, a HECM uses your home equity to provide you with proceeds. The mortgage becomes due when you die, sell your home, or move out. If you pass away, your heirs can pay the loan by selling the home or by refinancing the HECM.

Your Responsibilities

While you don’t have to make monthly mortgage payments, you’re still responsible for property taxes and homeowner’s insurance. You must also keep the home in good condition.


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