Home Equity Conversion Mortgage
Discover the Benefits of a HECM Reverse Mortgage
A Home Equity Conversion Mortgage (HECM) is the nation's most popular reverse mortgage and is insured by the Federal Housing Administration (FHA). Designed for homeowners where at least one spouse is age 62 and older, a HECM allows qualified borrowers to convert a portion of their home equity into tax-free proceeds* while continuing to live in and own their home.
Whether you're looking to improve monthly cash flow, eliminate mortgage payments, or create greater financial flexibility during retirement, a HECM reverse mortgage can be a powerful retirement planning tool.
Why Consider a HECM Reverse Mortgage?
A HECM offers several important benefits that have made it the reverse mortgage of choice for hundreds of thousands of retirees.
- FHA-insured loan backed by the federal government.
- Multiple payout options, including a lump sum, monthly payments, a growing line of credit, or a combination of these options.
- No required monthly mortgage payments.**
- Non-recourse loan, meaning neither you nor your heirs will ever owe more than the home's value when the loan becomes due and payable.
- Flexible repayment—you remain in control and may repay the loan at any time without prepayment penalties.
- Federally regulated consumer protections, including independent HUD-approved counseling before closing.
Put Your Home Equity to Work
HECM loan proceeds can be used however you choose. Many homeowners use a reverse mortgage to:
- Pay off an existing mortgage and eliminate required monthly mortgage payments**
- Increase monthly retirement income and improve cash flow
- Establish a growing line of credit for future needs
- Pay off high-interest rate credit card debt
- Preserve retirement savings and investment portfolios
- Cover healthcare, long-term care, or home renovation expenses
- Purchase a new primary residence through a HECM for Purchase
- Refinance an existing reverse mortgage to better meet changing financial goals
Is a HECM Right for You?
A HECM reverse mortgage is often an excellent solution for homeowners who want the security of an FHA-insured loan, flexible disbursement options, and the ability to access home equity without selling their home.
While a HECM works well for many retirees, homeowners with higher-value homes may also benefit from comparing it with Mutual of Omaha's SecureEquity® proprietary reverse mortgage, which can offer higher lending limits for qualified borrowers.
Understanding the differences between these programs is the key to choosing the solution that best supports your retirement goals.
Speak with The Casagrande Team
As Reverse Mortgage Specialists with Mutual of Omaha Mortgage, Dan and Danny Casagrande help homeowners compare every available option—including both FHA-insured HECM reverse mortgages and Mutual of Omaha's SecureEquity® product line.
Their goal is simple: help you select the reverse mortgage that provides the greatest overall benefit based on your home's value, your financial objectives, and your long-term retirement plans.
Contact us today for a complimentary, no-obligation consultation and personalized loan illustration.
* Reverse mortgage proceeds are generally not considered taxable income. This is not intended as tax advice. Please consult your tax advisor.
** Borrowers must continue to occupy the home as their primary residence and remain current on property taxes, homeowners’ insurance, home maintenance, and any applicable HOA dues. Loan approval is subject to underwriting guidelines.
Contact Dan and Danny For More Information
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The HECM Line of Credit: The Best-Kept Secret in Retirement Planning
One of the most valuable—and often overlooked—features of the HECM reverse mortgage is its **line of credit**. Unlike a traditional home equity line of credit (HELOC), a HECM line of credit cannot be frozen, reduced, or canceled simply because home values decline or lending conditions change, provided you continue to meet the terms of your loan.
You pay interest only on the funds you actually borrow, leaving the remaining available credit untouched until you need it. Many homeowners establish a HECM line of credit as a financial safety net, providing additional flexibility for unexpected expenses, healthcare costs, or to help a surviving spouse maintain financial security.
Some retirees also work with their financial advisor to strategically access their HECM line of credit during years when investment markets are down, allowing them to reduce withdrawals from retirement accounts that may have temporarily declined in value.
Whether you need it today or years from now, your HECM line of credit is there when you need it most.
Could You Qualify for a HECM Reverse Mortgage?
- At least one borrower must be age 62 or older.
- Borrowers 62 or older with a spouse under the age of 62 may still qualify with a Non-Borrowing Spouse provision
- Own and occupy your home, condominium, or manufactured home as your primary residence
- Have sufficient home equity
- Demonstrate the ability to continue paying your property taxes, homeowners’ insurance, HOA dues (if applicable) and maintain your home in good repair.
Ready to Learn More?
A HECM reverse mortgage can be a valuable tool for improving cash flow, preserving retirement assets, and creating greater financial flexibility. Every homeowner has their own story and unique situation. That's why Dan and Danny take the time to understand your goals, answer your questions, and explain your options before making any recommendations.
We're here to help. Schedule a complimentary, no-obligation consultation and discover whether a reverse mortgage is right for you.
Call us at
(831) 423-2900
or
(408) 297-0000
in California, and
(239) 776-4828
in Florida.
