HECM | Aaron Johnson Reverse Mortgage
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Loan Program · Age 62+

HECM — Home Equity Conversion Mortgage

The most widely used reverse mortgage in the US, backed by FHA insurance and federally regulated for strong consumer protections.

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What is a HECM

The federally insured reverse mortgage.

A Home Equity Conversion Mortgage (HECM) is a reverse mortgage insured by the Federal Housing Administration (FHA). It allows eligible homeowners age 62 and older to convert a portion of their home equity into loan proceeds — with no required monthly mortgage payments as long as you live in the home.

The loan is repaid when the last borrower permanently leaves the home, whether by selling, moving, or passing away.

“The HECM has been around since 1989 and is one of the most regulated financial products available to seniors. It’s far safer than most people assume.”

— Aaron Johnson, Sr. Mortgage Advisor
62+
Minimum Age
FHA
Insured
$0
Monthly Payments
✓  Non-Recourse Protection

You or your heirs will never owe more than the home is worth at repayment — even if the loan balance exceeds the home’s value.

✓  Flexible Payout Options

Choose a lump sum, monthly payments, a line of credit, or a combination — whichever fits your retirement income strategy best.

✓  Required Counseling

All HECM borrowers must complete independent, HUD-approved counseling before closing — an additional safeguard built into the program.

How It Works

The HECM process, step by step.

1

Check Eligibility

You must be at least 62, own your home as your primary residence, and have sufficient equity — typically 50% or more.

2

HUD-Approved Counseling

Before applying, you’ll complete a required counseling session with an independent, HUD-approved advisor to ensure the loan is right for you.

3

Application & Appraisal

Aaron submits your application and a licensed appraiser determines the current market value of your home — which affects your loan amount.

4

Underwriting & Approval

The lender reviews your financials, property, and title to confirm the loan meets FHA guidelines.

5

Closing & Funding

You sign the loan documents. After a 3-day rescission period, funds are disbursed according to your chosen payout method.

6

Live in Your Home

Continue living in your home. No monthly mortgage payments required — just keep up with property taxes, insurance, and maintenance.

Common Questions

HECM FAQ

Who qualifies for a HECM?+
You must be at least 62, own your home as your primary residence, have significant equity, and meet the lender’s financial assessment requirements. The home must be a single-family home, FHA-approved condo, or multi-unit property (up to 4 units) where you live in one unit.
How much can I borrow?+
The loan amount depends on your age, home value, current interest rates, and the FHA lending limit ($1,209,750 in 2025). Older borrowers with higher-value homes generally qualify for more. Use Aaron’s calculator for an estimate.
What are my responsibilities as a borrower?+
You must continue living in the home as your primary residence, keep current on property taxes and homeowners insurance, and maintain the property. Failing to meet these obligations can trigger loan repayment.
What happens when the loan ends?+
The loan becomes due when the last borrower permanently leaves the home. Your heirs can repay the loan and keep the home, sell the home and keep remaining equity, or hand the title to the lender if the balance exceeds the home’s value — with no personal liability due to the non-recourse feature.