Reverse Mortgages

Live in Your Home With No Mortgage Payment

With a Home Equity Conversion Mortgage

Many homeowners across the nation have chosen a Home Equity Conversion Mortgage (HECM) to help them meet financial and personal goals. A HECM loan can be a smart financial option for seniors who want to tap into a portion of equity in their home to gain access to additional funds.

Funds Available, Distribution Options, Interest Rates and Costs

  • Fixed and variable loan rates may be available.
  • Most closing costs and fees can be financed as part of the loan, resulting in little or no up front fees.
  • Amount available is based on the age of the youngest borrower, current interest rates, existing mortgage amount, and the lesser of the appraised value of your home, or sale price up to the maximum lending limit.
  • The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. You may need to set aside additional funds from loan proceeds to pay for taxes and insurance. Consult your financial advisor for detailed program terms.


  • Youngest borrower must be at least 62 years old.
  • Must have sufficient equity in your home.
  • Single family home, two to four unit owner-occupied home, FHA-approved condominium or manufactured home that meets FHA requirements.
  • Must meet financial eligibility criteria as established by HUD.



  • Eliminates existing monthly mortgage payments.
  • Stay in your home and maintain the title.
  • Heirs inherit any remaining equity after paying off the HECM loan.
  • Federal Housing Administration (FHA) insured HECM Loan Program.
  • Loan proceeds are not taxed as income (some state or federal benefits could be impacted, i.e Medi-Cal, SSI. Check with a professional).

You must still live in the home as your primary residence, continue to pay required property
taxes, homeowners insurance, HOA fees and maintain the home according to Federal
Housing Administration requirements.

Federal Housing Administration (FHA) mortgage insurance premiums (MIP) will accrue on your loan balance. You will be charged an initial MIP at closing. The initial MIP will be 2% of the home value not to exceed $13,593. Over the life of the loan, you will be charged an annual MIP that equals .5% of the outstanding mortgage balance.

The above advertisement has not been approved or endorsed by FHA or any other government agency.

Talk to us!

We’re here to help you every step of the way. Simply fill out our contact form and one of our Expert Loan Officers will get back to you quickly. Have A Question About A Home Purchase, Reverse Mortgage, or Refinance? Call Townstone at 312-896-2110