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Jennifer Hall

NMLS #224152

(614) 957-1270
Hometown Lenders, NMLS#: 65084

HECM and Hometown Lenders

Are you age 62 or older and looking for a loan program that can provide you with financial freedom and security for your future? The HECM (Home Equity Conversion Mortgage) for Purchase is a loan option for buyers that can provide all of that and more.


The HECM for Purchase, may be the right loan option for you, if you want to…

  • Experience more financial stability by increasing your monthly income
  • “Right size” your home into a more appropriate home for your situation
  • Plan for your future and eliminate concerns about leaving behind debt for loved ones
  • Purchase your dream home with NO monthly mortgage payments!

What is a reverse mortgage?

A reverse mortgage (HECM) is a financial tool that allows you to access a portion of the equity in your home without making any monthly mortgage payments. There are several ways you can receive the equity: lump sum, monthly payments, a line of credit or a combination of these. You can also use a reverse mortgage to purchase a new home with no monthly mortgage payments. You are still responsible for taxes, insurance, HOA dues, and maintenance.

Should the urgent need arise, how would someone get out of a reverse mortgage?

Because there are no prepayment penalties associated with this type of loan, the homeowner can do one of the following: refinance into a traditional mortgage, pay off the loan with existing funds or sell the property.

On average, how much money does someone get from a reverse mortgage?

Several factors determine how much a borrower can get, including the age of the youngest borrower, the value of their current home, whether it is a purchase or a refinance, etc. In general, the borrower could get up to 65% toward a refinance or purchase.

Who can qualify for a reverse mortgage?

For a traditional reverse mortgage product, the borrower must be 62 years old. If a couple is married, at least one person must be 62 or older. For two unmarried people, both must be age 62 or older. 

Additionally, there are programs available for borrowers as young as age 60.

How much equity do I need to get a reverse mortgage?

The amount you can borrow is based on the appraised value of the home, and your age (minus any outstanding mortgages). Traditionally, you need to have 35-50% equity position in your home to obtain a reverse mortgage.

Can I pay off my reverse mortgage early? If so, how do I do that?

Any home that would qualify for an FHA mortgage would also qualify for a reverse mortgage. Single-family (1-4 units), townhomes, properties in Planned Unit Developments (PUDs), or condominiums (must be FHA-approved.) There are restrictions based on the condition of the property (it must be safe and habitable.) It also needs to be your primary residence.

What happens to my reverse mortgage when I die?

If your spouse or partner passes away, then you can remain in the home. If you are the only person on the loan, the mortgage would need to be paid off (either by selling the property or paying off the loan.) Typically your estate would have 6-12 months to accomplish this goal.

Hometown Lenders NMLS ID 65084


Equal Housing Lender