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Home Equity Conversion Mortagage as a Financial Plan

Using a HECM as a Financial Plan

A Home Equity Conversion Mortgage (HECM) can be utilized as a financial plan by homeowners aged 62 or older to access their home equity without selling the property. Through a HECM, individuals can receive regular payments, a lump sum, or a line of credit, providing them with a potential source of income or a way to cover expenses while continuing to live in their home.
Purchasing second homes and rental properties
Safety net for unexpected expenses
Using tenure payments to reduce portfolio withdrawals
Increases monthly cash flow by eliminating monthly mortgage payments
Delays social security and pension payouts
Line of credit
Protects portfolio performance in a down market
Can replace cash reserves
Single Family, 2-4 Units OO, Condominiums and Manufactured Homes that meet lending criteria
Can replace cash reserves

If you are 62 years or older and occupy your home as the principal residence, a reverse mortgage can be a useful financial tool. Many homeowners who qualify rely on their reverse mortgage as a source of supplemental income for retirement as there are no limitations on how to use the money.