Questions about a HECM?

Below are some common questions about HECM loans:

What is a Home Equity Conversion Mortgage loan?

A HECM loan allows homeowners aged 62 and older, to convert a portion of their home’s equity into tax-free funds and eliminates the need to make any monthly mortgage payments. This allows many homeowners to obtain the cash they need to improve monthly cash flow, pay off debt, fund home repairs or renovations or build a safety net for unexpected expenses.

How do I qualify for a Home Equity Conversion Mortgage loan?

One Borrower on the Home’s Title Must be 62 years of age

The home must be your primary residence

The home must have sufficient equity and you must be able to pay off your existing mortgage (if any) using the HECM proceeds.

Most single-family homes, two-to-four unit owner-occupied dwellings, townhomes, or approved condominium or manufactured homes

How much money could I receive?

In general, the older you are, the more equity you have in your home and the lower your mortgage loan balance; the more money you can expect from a HECM loan.

How do I receive my proceeds?

Depending on how your structure your loan, there are multiple options to choose from when deciding how you would like to receive your loan funds. You can receive a lump sum payment, monthly payments or obtain a line of credit.

Do I have to pay income taxes on the proceeds?

Money received from a HECM is tax free as it is not considered income. However, you should consult your financial advisor for any effect on taxes.

Still have questions? 

Consult your appropriate government agencies for any effect on taxes or government benefits.

You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to FHA Requirements.

The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements.

Borrowers may access the greater of 60 percent of the principal limit amount or all mandatory obligations, as defined by the HECM requirements, plus an additional 10% during the first 12 months after loan closing. The combined total of mandatory obligations plus 10% cannot exceed the principal limit amount established at loan closing.

For more information about this website, call 928 345-1200 and ask for Warren Strycker. Email:, This is a HECM informational website and does not solicit or intend to represent any lender or loan officer in providing solutions for retirement products or services. 928 345-1200.



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