
Understanding HECM
What is a Reverse Mortgage?
A , commonly known as a reverse mortgage, is an loan that allows homeowners aged 62 and older to convert a portion of their home equity into cash.
Unlike a traditional mortgage where you make monthly payments to a lender, with a reverse mortgage, the lender makes payments to you. The loan is typically not repaid until you sell the home, move out, or pass away.
- No monthly mortgage payments required
- Proceeds are generally tax-free
- You retain ownership of your home
- Choose how you receive your funds

Why Choose HECM
Benefits of a Reverse Mortgage
Financial Freedom
Supplement your retirement income, pay off medical bills, or fund home renovations. The money is yours to use as you see fit.
Stay in Your Home
You continue to own your home and can live in it for as long as you meet the loan requirements, like paying taxes and insurance.
Non-Recourse Loan
You or your heirs will never owe more than the home's appraised value when the loan becomes due, thanks to FHA insurance.
Do You Qualify?
Basic eligibility requirements for a Reverse Mortgage:
The Process
How HECM Works: Step-by-Step
Getting a Reverse Mortgage is straightforward. Here is what you can expect from start to finish.
Consultation & Counseling
Speak with a licensed specialist to discuss your goals. Then, complete a required counseling session with an independent, HUD-approved counselor to ensure a HECM is right for you.
Application & Appraisal
Submit your formal application. An independent FHA-approved appraiser will then evaluate your home to determine its current market value, which helps calculate your loan amount.
Underwriting & Processing
Our team processes your loan, verifying that you can maintain property taxes and homeowners insurance. We also clear the title and prepare your file for final approval.
Closing
Once approved, we'll schedule a closing date. A notary can often come directly to your home so you can sign the final paperwork in comfort.
Funding & Disbursement
After a mandatory 3-day right of rescission period, your loan funds. Existing mortgages are paid off, and you receive your remaining proceeds according to your chosen plan.
Reverse Mortgage Estimator
Find out approximately how much tax-free cash you could unlock and project your loan balance over time.
Reverse mortgage pays off this balance first.
Estimated Available Funds
Tax-free cash available to you
*This calculator provides a rough estimate for educational purposes only and is not a quote or offer of credit. Actual available funds will depend on current interest rates, exact age, and a formal FHA appraisal.
* Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
Common Questions
Frequently Asked Questions
Everything you need to know about Reverse Mortgages.
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Important Legal Information: These materials are not from HUD or FHA and were not approved by HUD or a government agency.
A Reverse Mortgage (Home Equity Conversion Mortgage or HECM) is a home-secured loan that must be repaid upon default or a maturity event, such as when the last surviving borrower passes away, sells the home, or no longer lives in the home as their primary residence.
Borrowers must continue to pay property taxes, homeowner's insurance, and maintain the property. Failure to meet these requirements can trigger a loan default that may result in foreclosure. Borrowers must be at least 62 years old. Loan proceeds are generally tax-free, but you should consult a tax professional for your specific situation.
