Reverse Mortgages in Seattle (HECM Loans for Homeowners 62+)
A reverse mortgage—officially known as a Home Equity Conversion Mortgage (HECM)—allows homeowners age 62 or older to convert a portion of their home equity into cash without making monthly mortgage payments. Reverse mortgages are insured by the Federal Housing Administration (FHA) and are designed to provide financial flexibility during retirement.
At Seattle Mortgage Pros, we help eligible homeowners understand how reverse mortgages work and determine whether a HECM loan aligns with their long-term financial goals.
How a Reverse Mortgage Works
With a reverse mortgage, homeowners can access their home equity while continuing to live in the home. Instead of making monthly mortgage payments, the loan balance increases over time and is typically repaid when the home is sold, the borrower moves out permanently, or the borrower passes away.
Reverse mortgage proceeds can be received as:
- A lump sum
- Monthly payments
- A line of credit
- A combination of options
Homeowners must continue to pay property taxes, homeowners insurance, and maintain the home to remain in good standing.
Reverse Mortgage Purchase & Refinance Options
Reverse Mortgage Purchase
A reverse mortgage can be used to purchase a new primary residence, allowing eligible borrowers to buy a home with a large down payment and eliminate monthly mortgage payments.
Reverse Mortgage Refinance
Homeowners may refinance an existing mortgage or an existing reverse mortgage to:
- Access additional equity
- Improve loan terms
- Adjust payout options
Refinancing may be beneficial if home values have increased or if the borrower’s age has advanced since the original loan.
Key Benefits of a Reverse Mortgage
- No required monthly mortgage payments
- Access to tax-free loan proceeds
- Retain ownership of the home
- Flexible payout options
- FHA-insured HECM protection
Reverse mortgages can be used for supplementing retirement income, paying off an existing mortgage, covering medical expenses, or improving cash flow.
Who Qualifies for a Reverse Mortgage?
To qualify for a reverse mortgage, borrowers must:
- Be 62 years of age or older
- Occupy the home as a primary residence
- Have sufficient equity in the home
- Complete HUD-approved counseling
Eligible properties typically include single-family homes, FHA-approved condominiums, and certain manufactured homes that meet FHA guidelines.
Why Choose Seattle Mortgage Pros for a Reverse Mortgage?
Seattle Mortgage Pros provides clear, straightforward guidance on reverse mortgages and HECM loans in Seattle and throughout Washington State. We focus on education, transparency, and long-term planning—helping homeowners make informed decisions without pressure.
If you’re exploring a reverse mortgage purchase or refinance, Seattle Mortgage Pros is here to help you understand your options and move forward with confidence.
Frequently Asked Questions About Reverse Mortgage
Do I still own my home with a reverse mortgage?
Yes. Title stays in your name, exactly as it does with a traditional mortgage — the lender holds a lien, not ownership. You remain responsible for property taxes, homeowners insurance, and upkeep, and the loan becomes due when the last borrower sells or permanently leaves the home.
When does a reverse mortgage have to be repaid?
A HECM becomes due when the last surviving borrower sells the home, moves out permanently, or dies. It can also come due earlier if property taxes, homeowners insurance, or required maintenance go unpaid. Until one of those happens, the balance is not due.
Is counseling required before a reverse mortgage?
Yes. HUD requires every HECM applicant to complete counseling with a HUD-approved agency before an application can be submitted. The session covers costs, obligations, and alternatives, and it is independent of the lender. You receive a certificate afterward, which the lender must have on file.
What happens to the house when my heirs inherit it?
Your heirs can repay the balance and keep the home, or sell it and keep any remaining equity. A HECM is a non-recourse loan insured by FHA, so neither you nor your estate ever owes more than the home is worth when it is sold.
Can a reverse mortgage be used to buy a home?
Yes. HECM for Purchase lets a buyer aged 62 or older combine reverse mortgage proceeds with their own funds to buy a primary residence in a single transaction. It is most often used to downsize, move closer to family, or relocate into a more suitable home.
