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"Reverse Mortgage Seattle Bellevue Eastside Tacoma Everett"

What is a Reverse Mortgage 2

​A reverse mortgage loan, known as a Home Equity Conversion Mortgage or HECM (you’ll hear it pronounced “heck-um”) can be used by homeowners age 62 and older as a tool to make the most of an important retirement asset: home equity. Though not for everyone, obtaining a reverse mortgage could give you the financial freedom to live the retirement lifestyle you desire.


A traditional mortgage requires homeowners to make monthly loan payments. A reverse mortgage or HECM, on the other hand, allows the homeowner to convert some of the equity in their home into loan funds they can receive through a variety of payment options (monthly installments, line of credit, lump sum, or a combination) — but with no monthly mortgage payments.* As with any mortgage, the borrower is responsible for property taxes, homeowner's insurance, and property maintenance.


If you own your home outright or do not owe a large amount, you may be able to access that equity now to use however you would like.


Safeguarding Your Home


As long as you abide by the loan terms (such as keeping current with property-related taxes, insurance and maintenance), your reverse mortgage will only become due when you no longer live in the home full time, sell the home or pass away.


Many people are concerned that the loan balance could increase to more than the value of the home, especially if you live in the home for many years, or if there is a decline in the real estate market. However, a FHA (Federal Housing Administration) -insured reverse mortgage loan is a non-recourse loan.


This means that you and your heirs are not personally liable for any portion of the loan that exceeds the value of your home, even if your home decreases in value. Many borrowers find this safeguard reassuring.




There are some requirements that must be met to be eligible for a reverse mortgage, including:

  • You must be at least 62 years old.

  • You must live in the home full time.

  • If you have a mortgage on your home you may still qualify.

  • You must have the financial resources to maintain the home and continue paying property-related taxes, insurance, and any homeowner’s association fees.

  • You must not be delinquent on any federal debt.

  • You must participate in an information session led by a reverse mortgage counselor who’s approved by the federal Department of Housing and Urban Development (HUD).

  • Your home must be one of these property types: a single-family house or townhome; a two- to four-unit property that you occupy as your principal residence; a condominium that’s approved by the Federal Housing Authority (FHA); or a manufactured home meeting certain criteria.


Next Steps: Discovering More


When you speak with our licensed loan specialist, they will cover the eligibility requirements of a reverse mortgage loan in detail. They will also discuss the types of payment options you may choose from, including monthly installments, a lump sum, a line of credit, or a combination of these options.


Because every financial situation is different, your loan specialist will be able to answer questions specific to your financial goals and lifestyle.


Our loan specialist will provide you with all of the information you need to make an educated decision, with your best interests in mind.


Take the next few minutes and allow us to help you determine if you are eligible to apply, takes about 2 minutes .


* Borrower is responsible for property taxes, homeowners insurance, and property maintenance. A HECM is home-secured debt payable upon default or a maturity event.


Eligibility Calculator

  • Home Owner's Age

  • Home Value

  • Mortgage Balance

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