HECM Loan
HECM Loan – Home Equity Conversion Mortgage
If you’re a homeowner aged 62 or older, a HECM loan (Home Equity Conversion Mortgage), commonly known as a reverse mortgage, can help you unlock the equity in your home to supplement retirement income—without having to sell or move. This FHA-backed loan allows seniors to access tax-free funds while continuing to live in their primary residence and eliminates the need for monthly mortgage payments.
At Windward Mortgage, we specialize in helping seniors understand and navigate the HECM process. Our team provides personalized guidance and clear solutions to help you make the most of your home equity while supporting your retirement goals.
What Is a HECM Loan?
A HECM loan is a government-insured reverse mortgage designed for homeowners 62 and older. Instead of paying a monthly mortgage, you receive funds from the lender, which can be accessed in a variety of ways:
- Lump Sum: A one-time payout for large expenses
- Monthly Payments: Regular payments to supplement income
- Line of Credit: Draw funds as needed; unused amounts may grow over time
- Hybrid Option: A combination of monthly payments and a line of credit
You remain the homeowner and continue living in your house while converting a portion of your home equity into usable cash. Repayment is generally deferred until the last borrower permanently leaves the home or passes away. At that time, the loan balance is repaid, typically through the sale of the home, with any remaining equity going to you or your heirs.
Key Benefits of HECM Loans
No Monthly Mortgage Payments
You are not required to make regular mortgage payments, freeing up income for everyday living expenses or long-term retirement planning.
Stay in Your Home
You retain full ownership of your home as long as loan obligations—such as property taxes, insurance, and maintenance—are met.
Access to Tax-Free Funds
Funds received through a HECM are typically not considered taxable income, making it a valuable tool to supplement retirement income.
Flexible Use of Funds
Use your reverse mortgage proceeds for anything: healthcare, home improvements, travel, or building a financial cushion.
FHA-Insured Protection
HECM loans are federally insured, meaning you and your heirs are protected from owing more than the home’s value at the time of repayment.
How a HECM Loan Works
- Eligibility and Counseling
Before applying, you must complete HUD-approved counseling to understand the program, your responsibilities, and alternative options. - Loan Disbursement Options
Choose the method that best fits your financial goals: lump sum, monthly payments, line of credit, or a combination. - Accrued Interest and Repayment
Interest accrues on the loan balance over time. Repayment is typically required only when the last borrower permanently leaves the home, sells the property, or passes away. - Non-Recourse Protection
You or your heirs will never owe more than the home’s value at repayment, even if the loan balance exceeds it.
Why Choose Windward Mortgage for a HECM Loan
- Expertise in Reverse Mortgages: We specialize in HECM loans and stay up-to-date with the latest FHA guidelines.
- Personalized Guidance: From counseling to closing, we provide step-by-step support and answer all your questions.
- Transparent Process: We make the loan process simple, secure, and stress-free.
- Client-Focused Approach: We help seniors and families plan wisely, offering solutions tailored to your unique retirement goals.
A HECM loan can provide financial flexibility, peace of mind, and the ability to enjoy retirement while remaining in your home.
📞 Contact Windward Mortgage Today
Phone: 404-436-6977
Email: info@windwardmortgage.com
Schedule a consultation to learn how much equity you may be able to access through a HECM loan. At Windward Mortgage, we make reverse mortgages easy, secure, and tailored to your lifestyle.
