Best for
Homeowners 62 and older who plan to stay in the home long term.
- No monthly principal and interest payment required
- FHA-insured, non-recourse structure
- Independent HUD counseling included
Your ongoing obligations
You must keep the home as your primary residence and stay current on property taxes, homeowners insurance, any HOA dues, and basic maintenance. Falling behind on those can trigger the loan becoming due.
How the balance behaves
Interest and fees accrue onto the balance rather than being paid monthly, so the amount owed grows over time and equity typically shrinks. It's non-recourse: neither you nor your heirs owe more than the home's value at sale.
Counseling requirement
Every HECM requires a session with an independent HUD-approved counselor before application. It's a genuinely useful conversation, and I recommend inviting adult children into the planning.