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Reverse Mortgage Quick Q & A Guide

How to Obtain Access to Loan Proceeds Without Selling Your Home

H.E.C.M = Home Equity Conversion Mortgage

What is a H.E.C.M. Mortgage Loan?

It's a special type of loan that enables borrowers who are at least 62 years of age to convert some of their home equity into loan proceeds that are typically tax free  (consult your tax advisor).

What are the eligibility requirements?

Borrower(s) who are at least 62 years of age and occupy the property as their principal residence

Eligible properties include single-family homes, condominiums and townhomes, or a 2-to-4 unit dwelling

The home must be owned free and clear or you must refinance an existing mortgage balance into a reverse mortgage loan without the required monthly mortgage payments of a traditional mortgage. Repayment is required if the borrower(s) no longer reside at the property, taxes and insurance on the property are not kept current, the property is not maintained to FHA standards, or other program requirements are not satisfied

Generally, there are no income, employment or credit score requirements. Borrower(s) are required to obtain an eligibility certificate by receiving counseling from a HUD-approved agency: Family members to participate in these informative sessions.

What are some of the benefits?

The HECM mortgage loan borrower retains ownership and lives in their home, as long as all other program requirements are met

Loan proceeds can be used for any purpose including meeting daily and monthly expenses, or covering health care expenses

Loan proceeds are not considered income and may not affect most Social Security or Medicare Benefits

What type of interest rate options are there?

 First Bank Mortgage provides both fixed and variable rate FHA-insured HECM loans

What are the distributed options?

With a variable-rate HECM loan, you can have flexible distribution options:

- A lump sum to cover large expenses
- Monthly advances to supplement income
- A line of credit to draw on as needed
- And with a variable rate option chosen you can even change how you receive your HECM proceeds as as often as your needs or your situation changes over time

With a fixed-rate reverse mortgage loan, a lump sum distribution is required* (ask about recent changes)

What are the costs with a HECM mortgage loan?

A deposit for the appraisal is an out-of-pocket expense

There are additional costs, such as an origination fee, title insurance, a mortgage insurance premium and attorney fees

The borrower is expected to continue maintaining the property and paying the taxes and insurance premiums on the property


Contact our team of Reverse Mortgage Specialists and let us provide a complimentary consultation.  We will explain in detail exactly how the loan works, see what options may be available to you, and answer any questions that you or your loved ones might have.

FirstBank Mortgage Hotline:  (877) 865-6706.


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FirstBank is a long standing member of and holds A+ rating from the BBB. We are subscribing members of the National Reverse Mortgage Lenders Association (NRMLA), and we are an approved direct lender with the US Department of Housing and Urban Development (HUD).

3500 Blue Lake Drive, Ste. 325 

Birmingham, AL 35243 
205-503-4188 | 800-200-6462


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