Reverse mortgages are popular with seniors who have equity in their homes and want to remain in their homes or supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through a Federal Housing Administration (FHA)-approved lender. The HECM is FHA's reverse mortgage program that enables you to withdraw a portion of your home's equity to use for home maintenance, repairs, or general living expenses. HECM borrowers may reside in their homes indefinitely as long as property taxes and homeowner's insurance are kept current.

The amount that will be available for withdrawal varies by borrower and depends on:

• Age of the youngest borrower or eligible non-borrowing spouse;
• Current interest rate; and
• Lesser of appraised value or the HECM FHA mortgage limit or the sales price.

If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.

You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

To learn more about FHA's HECM program contact a HUD Certified Housing Counselor or HECM lender:

• Counselors
  • To find a reverse mortgage counselor near you, search the HECM Counselor Roster or call (800) 569-4287.
  • To find a HECM counselor that provides telephone and face-to-face counseling nationwide, view the HUD Intermediaries Providing HECM Counseling Nationwide list.
• Lenders
  • To find a HECM lender, use the HUD Lender List Search.

Reverse Mortgage Consumer Information

• HUD's Seniors page
• Inheriting a Home Secured by an FHA-insured Home Equity Conversion Mortgage (Fact Sheet)

Lender Information

• HECM for Lenders page

Housing Counselor Information

• Counseling: Avoid Reverse Mortgage Missteps

If you are interested in a reverse mortgage, beware of scam artists that charge thousands of dollars for information that is free from HUD!