Home Equity Conversion Mortgage (HECM), sometimes known as a reverse mortgage, is a special type of home loan that may be available if you are age 62 years or older. It lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage. Borrowers can also use a HECM loan to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

Potential HECM borrowers can apply for a reverse mortgage loan through a lender who specializes in HECM loans. As part of the application process, you will be required to receive reverse mortgage counseling from a HECM counselor. The housing counseling staff from NeighborWorks Green Bay can provide this service, which will help potential borrowers determine if a reverse mortgage loan is right for you. The goal is to help you understand your obligations if you apply for and receive a reverse mortgage loan.