How a HECM works
A HECM lets homeowners 62+ access equity with no monthly mortgage payment, while keeping title. It’s non-recourse (you never owe more than the home’s value), requires HUD counseling, and you must keep taxes, insurance, and upkeep current.
You choose how to receive funds — a lump sum, a growing line of credit, monthly payments, or a mix. The loan is repaid when the last borrower sells, moves out for 12+ months, or passes away.
The honest pros and cons
Pros: eliminates a mortgage payment, non-recourse protection, a line of credit that grows. Cons: upfront costs and insurance, equity draws down over time, and you must keep property charges current. It fits homeowners planning to stay long-term; it fits poorly if you’ll move soon.
How you can receive the money
One of the most useful features of a HECM is flexibility in how you take the funds. You can choose a lump sum, a line of credit that actually grows over time on the unused portion, monthly payments for as long as you live in the home (tenure) or for a set period (term), or a combination. Many retirees use the growing line of credit as a standby reserve — leaving it untouched so it grows, then drawing on it for healthcare or market downturns. The right structure depends on your goals, and we’ll walk through each.
Protecting your spouse and your heirs
Two protections matter most. If one spouse is under 62, listing them correctly as an eligible non-borrowing spouse can let them remain in the home if the borrower passes. And because a HECM is non-recourse, neither you nor your heirs will ever owe more than the home is worth at repayment — heirs can repay the balance and keep the home, or sell it and keep any remaining equity. Getting the setup right is where a knowledgeable broker earns their keep; we make sure the details protect the people you care about.
Frequently asked questions
Do I still own my home?
Yes — you keep title. The reverse mortgage is a lien repaid when the last borrower permanently leaves the home.
Can my spouse stay in the home if I pass away?
If they’re set up correctly as an eligible non-borrowing spouse, yes — they can typically remain in the home. Proper setup is essential, and we handle it carefully.
What happens to my home when the loan ends?
When the last borrower permanently leaves, heirs can repay the balance and keep the home or sell it. Because it’s non-recourse, they never owe more than the home’s value.
Can I owe more than my home is worth?
No — HECMs are non-recourse. You or your heirs never owe more than the home’s value at repayment.
What’s the minimum age?
62 for a HECM; some proprietary reverse loans start at 55.
Save Financial, Inc. — NMLS #377740, DRE #01875766. Equal Housing Opportunity. Figures are illustrative for 2026 and not an offer of credit or a guarantee of rates or approval.