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HECM Reverse Mortgage Loans

Home Equity Conversion Mortgage

What is an HECM Reverse Mortgage?

Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to 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 an FHA-approved lender.

If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s HECM program.

Is an HECM Reverse Mortgage Right for You?

If you are considering a reverse mortgage loan, it is important to speak with one of our loan specialists to see if you qualify and to compare the benefits and drawbacks of this type of loan against other types of loans.​​

We offer a no-hassle & easy quote without the formal application or credit check required. Just answer a few questions about your mortgage goals! We will review the information you provide with some recommendations and options from our team of experts!

HECM Reverse Mortgage Eligibility

You must be 62 years of age or older.

The property must be your primary residence.

You must have enough equity in your home.

You can own your home free and clear or have an existing mortgage.

HECM Reverse Mortgage Caveats

A HECM is only available through a U.S. Department of Housing (HUD)-approved lender. For the HECM process, there are a few unique steps you’ll take to apply for this type of loan.

Required HECM Counseling

Because of the complex nature of the reverse mortgage, HUD requires all borrowers to complete a reverse mortgage counseling session. The HUD-approved, third-party counseling session ensures you understand how the loan works, the costs associated with it and any other finance options you may have. Counseling may cost up to $200, lasts up to 90 minutes and may be done in person or, in some states, over the phone.

Calculated Approval Amount

There are three factors that determine how much you can borrow with a HECM:

  • The age of the youngest borrower
  • Current interest rates
  • The amount of equity you have in your home

Required Financial Assessment

To ensure borrowers are in a good financial position to take on the financial obligations of the loan (paying property taxes, homeowners insurance and home maintenance costs), HUD also requires the borrower to undergo a financial assessment during the process.

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