Home Equity Conversion Mortgage
Open the Door to Financial Freedom in Retirement with a HECM Reverse Mortgage
A reverse mortgage is a special type of home loan available to homeowners age 62 and older, allowing you to convert a portion of your home’s equity into cash—without selling your home or taking on monthly mortgage payments.* The most common type is the Home Equity Conversion Mortgage (HECM), which is the only reverse mortgage insured by the Federal Housing Administration (FHA). HECMs are available exclusively through FHA-approved lenders like Fairway, offering added protection and peace of mind.
Benefits:
Increased Cash Flow
You can tap into a portion of your home equity as tax-free* cash—without impacting your Social Security or basic Medicare benefits in most cases. Use the funds however you choose, whether for daily expenses, home improvements, or added peace of mind.
* This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation.
Flexible Options, Peace of Mind for the Family
A reverse mortgage offers your loved one the freedom to stay in their home without the burden of monthly mortgage payments—unless they choose to make them. They’re still responsible for basic upkeep, property taxes, and homeowners insurance, just like with any mortgage.
The loan is not due until your parent or loved one permanently leaves the home. At that point, you or the estate will have up to 12 months to repay the loan—typically by selling the property. This federally insured program provides structure and flexibility, helping families plan ahead with confidence.
FHA Non-Recourse Protection
With a reverse mortgage insured by the FHA, you and your heirs are protected. If the loan balance ever exceeds the home’s value when it’s sold, neither you nor your family will be responsible for the difference—the FHA covers the shortfall. And if the home sells for more than what’s owed, any remaining proceeds go to you or your heirs.
For example:
If the loan balance is $400,000 but the home sells for only $350,000, the FHA steps in to cover the $50,000 difference. Your heirs will never owe more than the home’s value—and if the home sells for $450,000, they would receive the $50,000 left over after repaying the loan.
General Requirements:
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You must be 62 years old or older
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You must meet minimal credit and property requirements
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You must receive reverse mortgage counseling from a HUD approved counseling agency
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You must not be delinquent on any federal debt
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Home must be a primary residence
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Property must be a single-family home, a 2- to 4-unit dwelling, or FHA-approved condo
Common Uses of a Reverse Mortgage:
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Refinancing your existing mortgage. If you are carrying mortgage in retirement, refinancing to a reverse mortgage eliminates your obligation to make required monthly mortgage payments. You must maintain the home and pay your homeowners insurance and property taxes.
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Supplement cash flow with a steady stream of funds
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Bridge the Medicare gap from age 62 to 65
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Use as a standby line of credit
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Fund major expenses, such as in-home care or home renovations
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Debt consolidation
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Copyright©2025 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity.