Couple being educated about how the HECM Program works and how to get a certification.
Is it RIGHT for you?

How the HECM Program Works

There are many factors to consider before deciding whether a HECM is right for you. To aid in this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs.

Couple being counseled on hecm eligibility Requirements

There are borrower and property eligibility requirements that must be met. You can use the listing below to see if you qualify. If you meet the eligibility criteria, you can complete a reverse mortgage application by contacting a FHA-approved lender.

Regular HECM Requirements - jumbo requirements differ

HECM Jumbo Mortgage HAPPY COUP

Borrower Requirements:

You must:

  • Be 62 years of age or older
  • Own the property outright or paid-down a considerable amount
  • Occupy the property as your principal residence
  • Not be delinquent on any federal debt
  • Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
  • Participate in a consumer information session given by a HUD- approved HECM counselor

Property Requirements:

The following eligible property types must meet all FHA property standards and flood requirements:


  • Single family home or 2-4 unit home with one unit occupied by the borrower
  • HUD-approved condominium project
  • Manufactured home that meets FHA requirements

Financial Requirements:

  • Income, assets, monthly living expenses, and credit history will be verified.
  • Timely payment of real estate taxes, hazard and flood insurance premiums will be verified

Payout of Proceeds:

For adjustable interest rate mortgages, you can select one of the following payment plans:


  • Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
  • Term - equal monthly payments for a fixed period of months selected.
  • Line of Credit - unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
  • Modified Tenure - combination of line of credit and scheduled monthly payments for as long as you remain in the home.
  • Modified Term - combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.


For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.


Mortgage Amount

The amount you may borrow will depend on:


  •  Age of the youngest borrower or eligible non-borrowing spouse*
  •  Current interest rate; and
  •  Lesser of:

                   *   appraised value;

                   *   the HECM FHA mortgage limit of $726,525; or

                    *   the sales price (only applicable to HECM for Purchase)


* If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.