By George A. Downey, CRMP
Homeowners aged 62 and older have an incredible opportunity to turn their home equity into financial freedom. The federally insured Home Equity Conversion Mortgage (HECM) program lets you access your home’s value without selling or moving – ideal for those who want to age in place with confidence.
Effective January 1, 2026, the FHA national lending limit increased to $1,249,125, giving older homeowners even greater access to their home equity.
Why consider it?
Rising costs, market uncertainty, and longer lifespans can strain retirement plans. For most Americans, home equity is their largest asset, yet it often sits untapped. A reverse mortgage changes that by converting part of your equity into tax-free cash or a growing line of credit – without monthly payments.
Is it safe?
Absolutely. Backed by HUD and FHA, HECM loans guarantee your terms and funds as long as you meet basic obligations like living in the home, paying property taxes, insurance, and maintaining your home. Even if markets dip or lenders close, your benefits remain secure.
Basic benefits:
- No monthly mortgage payments
- Income tax-free withdrawals
- Keep your home title – no maturity date
- Growing credit line for future needs
- Non-recourse loan—no personal liability
What’s next?
Explore your eligibility to see if and how this program fits your goals. A Certified Reverse Mortgage Professional (CRMP) can guide you through every step, ensuring it’s the right choice for you.
Your home has worked hard for you – now let it return the favor. Take control of your financial future today!
Other considerations for reverse mortgages: Eligibility requirements apply. HECM counseling is required. Subject to credit and income approval. You must occupy the residence as your primary home. You must continue to pay for property taxes, insurance payments, homeowners’ association fee, home maintenance costs, and other fees as required. You must have significant cash available for the down payment. The balance of the loan grows over time and interest is charged on the balance. The loan becomes payable when the last borrower on eligible non-borrowing spouse passes away, sells the home, permanently moves out, defaults on taxes, insurance, or maintenance, or otherwise does not comply with the loan terms.
About the Author: George Downey, CRMP (NMLS ID 10239) is the Regional Senior Vice President of The Federal Savings Bank branch located at 100 Grandview Road, Suite 105, Braintree, MA 02184. Contact Mr. Downey at 781-843-5553 / Cell 617-594-3666 / gdowney@thefederalsavingsbank.com, www.thefederalsavingsbank.com/georgedowney
