What Is a HECM (Reverse Mortgage)?
A HECM is the most common type of reverse mortgage, backed by the Federal Housing Administration (FHA).
It allows homeowners 62 and older to convert a portion of their home equity into cash…
Without required monthly mortgage payments
Instead of making payments to a lender:
The loan is repaid later - typically when the home is sold, you move out, or pass away.
How It Works (Simple Version)
With a HECM, you can access your equity in several ways:
- Lump sum
- Monthly income
- Line of credit (use as needed)
- Or a combination
And here's the key difference:
No required monthly principal and interest payments
(as long as you live in the home and keep up with taxes, insurance, and maintenance)
What Makes HECM Different
This is not a traditional mortgage.
It's designed for a different stage of life.
No Monthly Mortgage Payments Required
Improves monthly cash flow and flexibility.
You Still Own Your Home
Title stays in your name.
Non-Recourse Protection
You or your heirs will never owe more than the home is worth.
Flexible Access to Funds
Use equity when you need it, how you need it.
HECM for Purchase (Buy a Home Without a Monthly Payment)
Most people don't realize this:
You can use a reverse mortgage to buy a home
This is called a HECM for Purchase.
It allows you to:
- Buy a new primary residence
- Put down a portion of the purchase price (typically 45 - 62%)
- Finance the rest with a reverse mortgage
- Have no required monthly mortgage payment
This is especially powerful for:
- Downsizing
- Relocating closer to family
- Moving into a more manageable home
Built for the Northeast Ohio Market
In areas like:
- Beachwood
- Cleveland
- Lakewood
- Solon
- Parma
- Surrounding Northeast Ohio suburbs
Many homeowners have:
- Significant equity
- Low or paid-off mortgages
- Rising property costs (taxes, insurance, maintenance)
A HECM can help convert that equity into usable financial flexibility
Real Example
Let's say:
Home value: $400,000
You're 70 years old
You may be able to access a portion of that equity…
Without selling
Without adding a monthly mortgage payment
Or:
Use that equity to purchase a new home with no monthly mortgage payment
The Biggest Misconceptions I Hear
Let's clear these up:
"The bank owns my home."
No - you retain ownership.
"My kids get stuck with the debt."
No - the loan is non-recourse.
"I'll run out of money."
Options like a line of credit can grow over time and be used when needed.
What to Expect
A HECM is a powerful tool, but it's not for everyone.
Here are the basics:
- Must be 62 years or older
- Primary residence only
- Must maintain taxes, insurance, and home upkeep
- HUD counseling is required (for your protection)
- Loan balance increases over time
This is a strategy conversation, not a one-size-fits-all solution
Why Families Work With Me
With over 20+ years helping clients across Cleveland and Northeast Ohio, I approach reverse mortgages differently:
Education first
Strategy second
Decision last
This is about:
- Helping you understand all options
- Comparing HECM vs selling vs refinancing
- Structuring the right plan for your situation
- Including family members in the conversation when needed
No pressure. Just clarity.
Get a Reverse Mortgage Strategy Review
If you or a family member are in:
- Beachwood
- Cleveland
- Lakewood
- Solon
- Anywhere in Northeast Ohio
We can walk through:
- How much equity is available
- Whether a HECM makes sense
- Purchase vs stay-in-place strategies
- What your long-term plan could look like
Request a Reverse Mortgage Consultation
Or schedule a quick call and we'll walk through your options together.