Home Equity Conversion Mortgage (HECM) — Florida Reverse Mortgage Guide
What Is a Home Equity Conversion Mortgage (HECM)?
A Home Equity Conversion Mortgage — commonly called a HECM or reverse mortgage — is a federally insured loan product backed by the Federal Housing Administration (FHA) that allows homeowners age 62 or older to convert a portion of their home equity into accessible funds. Unlike a traditional mortgage, a HECM does not require a monthly mortgage payment. Instead, the loan balance grows over time and is typically repaid when the homeowner sells the home, moves out permanently, or passes away.
PHILANYA, INC. works with Florida homeowners to help them understand whether a HECM fits their financial situation, compare options from multiple wholesale lenders, and move through the process with clarity.
Call or text 904-824-9133, or start a conversation using the Chat feature on our site.
Important: A HECM is a complex loan product regulated by the U.S. Department of Housing and Urban Development (HUD) and the FHA. All HECM borrowers are required by law to complete HUD-approved counseling before proceeding with an application. PHILANYA provides education and guidance — not legal or financial advice. Contact us to learn more about your options.
Who Is a HECM For?
A HECM may be worth exploring if you:
Are age 62 or older (at least one borrower on the title must meet this requirement)
Own your home outright or have significant equity in it
Live in the home as your primary residence
Want to supplement retirement income, cover healthcare costs, or reduce monthly financial obligations
Are exploring options to age in place without selling your home
A HECM is not a fit for every situation. PHILANYA helps clients understand both the benefits and the long-term implications before moving forward.
How Does a HECM Work?
A HECM converts a portion of your home equity into loan proceeds you can access in several ways. The amount available depends on your age, the appraised value of your home, current interest rates, and HUD lending limits.
How you can receive HECM proceeds:
Lump sum — a single disbursement at closing (typically with a fixed interest rate)
Line of credit — draw funds as needed; unused portions grow over time
Monthly payments — structured disbursements over a set term or for life (tenure payments)
Combination — a mix of the options above
What happens to the loan: The loan balance increases over time as interest accrues and fees are added. No monthly mortgage payment is required, though the borrower remains responsible for property taxes, homeowner's insurance, and home maintenance. The loan becomes due when the last borrower permanently leaves the home.
HECM Requirements
To be eligible for a HECM, borrowers generally must meet the following criteria:
Age: 62 or older (all borrowers on title)
Property type: Primary residence — single-family home, FHA-approved condominium, or manufactured home meeting HUD requirements
Equity: Sufficient equity in the home to satisfy loan requirements after closing costs
Financial assessment: Ability to continue paying property taxes, insurance, and maintenance
Counseling: Completion of a HUD-approved HECM counseling session before application
PHILANYA confirms current HUD guidelines and lender requirements with each borrower — eligibility details can change, and loan amounts vary based on individual circumstances.
HECM vs. Traditional Mortgage - Key Differences:
What PHILANYA Does
PHILANYA, INC. is a Florida-licensed mortgage brokerage. For HECM borrowers, PHILANYA:
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Explains how a HECM works in plain language — no jargon, no pressure
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Helps you understand the tradeoffs compared to other equity-access options (such as a HELOC or cash-out refinance)
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Works with wholesale lenders offering HECM products to Florida homeowners
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Guides you through the application process step by step once you are ready to proceed
PHILANYA does not provide financial planning, legal, or tax advice. HECM counseling is required by law and is provided by HUD-approved third-party counselors — PHILANYA can help connect you with an approved counselor.
Protecting Your Estate
A HECM is a non-recourse loan. This means the loan cannot exceed the appraised value of the home at the time of repayment, regardless of how much the loan balance has grown. Heirs are not personally liable for any shortfall between the loan balance and the home's value. If heirs wish to keep the home, they may repay the loan balance (or 95% of the appraised value, whichever is less) to retain ownership.
Frequently Asked Questions — HECM / Reverse Mortgage in Florida
Q: What is a HECM and how is it different from a standard reverse mortgage?
A HECM (Home Equity Conversion Mortgage) is the most common type of reverse mortgage and is the only one insured by the federal government through the FHA. Unlike proprietary reverse mortgage products offered by private lenders, HECMs are subject to HUD regulations, borrower protections, and mandatory counseling requirements. Most reverse mortgages originated in the United States are HECMs.
Q: Can I lose my home with a HECM?
A HECM does not require monthly mortgage payments, but the borrower remains responsible for property taxes, homeowner's insurance, and maintaining the home. Failure to meet these obligations can result in the loan becoming due. PHILANYA helps clients understand these ongoing requirements before moving forward with an application.
Q: Does a HECM affect Social Security or Medicare?
HECM proceeds are generally not considered taxable income, which typically means they do not affect Social Security or Medicare benefits. However, they may affect need-based programs such as Medicaid or Supplemental Security Income (SSI) depending on how funds are held. PHILANYA recommends consulting a financial advisor or elder law attorney for guidance on benefit impacts specific to your situation.
Q: Can I still leave my home to my heirs with a HECM?
Yes. When the last borrower passes or permanently vacates the home, heirs have the option to sell the home and pay off the HECM balance, refinance into a traditional mortgage to keep the home, or allow the lender to sell the property. Because HECMs are non-recourse loans, heirs are never personally responsible for a loan balance that exceeds the home's value. Any equity remaining after the loan is repaid belongs to the estate.
Q: What is HUD-approved HECM counseling and is it required?
Yes — federal law requires all HECM applicants to complete a counseling session with an independent, HUD-approved counselor before an application can proceed. The counselor reviews the borrower's financial situation, explains how a HECM works, discusses alternatives, and confirms that the borrower understands the long-term implications. PHILANYA can help connect you with a HUD-approved counselor in Florida.
Q: How much money can I get from a HECM?
The amount available through a HECM depends on several factors: the age of the youngest borrower, the appraised value of the home, current interest rates, and HUD's maximum claim amount (lending limit). Generally, older borrowers with more home equity and lower interest rates qualify for larger loan amounts. PHILANYA works with wholesale lenders to show you what is available for your specific situation — without committing you to an application.
Q: Can I get a HECM if I still have a mortgage on my home?
Yes. Many HECM borrowers have an existing mortgage. In that case, the HECM proceeds first pay off the existing mortgage balance. Any remaining funds are then available to the borrower. The goal is to eliminate the monthly mortgage payment — which is one of the most common reasons Florida homeowners explore a HECM.
Q: Is a HECM available anywhere in Florida?
Yes. PHILANYA originates HECM loans statewide across Florida for eligible primary residences. Call 904-824-9133 or sign up to begin a conversation.
This page is for educational purposes only. A Home Equity Conversion Mortgage is a complex loan product. Loan eligibility, proceeds, terms, and availability are subject to HUD guidelines, FHA requirements, and individual lender underwriting. PHILANYA, INC. does not provide financial, legal, or tax advice. All HECM borrowers are required to complete HUD-approved counseling before application. Consumer mortgage loans are available for Florida residents only.
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