HECM Reverse Mortgages in Washington
A Trusted Solution for Washington Seniors to Access Home Equity and Gain Financial Freedom in Retirement
Discover the Benefits of a Home Equity Conversion Mortgage (HECM) in Washington
Stay in Your Home While Accessing Equity
No Monthly Mortgage Payments Required
Flexible Payout Options to Fit Your Needs
Home Equity Conversion Mortgage (HECM) Calculator – Washington
Wondering how much money you could receive from a reverse mortgage in Washington? Use our HECM calculator to estimate the amount of tax-free cash you may be eligible to access based on your age, home value, and current mortgage balance.
HECM Reverse Mortgage Calculator
FHA-Insured Home Equity Conversion Mortgage Estimation Tool
Note: This is an estimate. Your actual eligibility and loan amount will depend on a full financial review and HUD counseling.
Understanding HECM Reverse Mortgages in Washington
For many Washington State homeowners aged 62 and older, a Home Equity Conversion Mortgage (HECM)—commonly known as a reverse mortgage—can be a strategic financial tool to enhance retirement. Backed by the Federal Housing Administration (FHA), HECM loans allow seniors to convert part of their home’s equity into tax-free income, while still living in and owning their home.
Here’s what Washington residents need to know about how HECM reverse mortgages work and how they can support financial independence in retirement.
What Is a HECM Reverse Mortgage?
A HECM reverse mortgage is a government-insured loan designed specifically for seniors. It allows eligible homeowners to access their home equity without having to sell the property or make monthly mortgage payments.
Instead of paying the lender each month, as with a traditional mortgage, the lender pays you. You can receive the funds in several flexible formats:
- Lump sum
- Monthly installments
- Line of credit
- Or a custom combination of these options
Repayment is not required until the borrower sells the home, moves out, or passes away.
How HECM Reverse Mortgages Work in Washington
Washington follows federal HECM guidelines but has some unique considerations that make it important to work with a local, experienced reverse mortgage professional.
Eligibility Requirements:
- Homeowner must be 62 years or older
- Must occupy the home as their primary residence
- Must have sufficient equity in the home
- Must complete a HUD-approved counseling session
- Must be able to stay current on property taxes, homeowners insurance, and basic home maintenance
Eligible Property Types in WA:
- Single-family homes
- 2–4 unit homes (if the borrower lives in one unit)
- FHA-approved condominiums
- Manufactured homes that meet FHA standards
Washington-Specific Regulations and Protections
Washington has some of the most consumer-friendly regulations in the country when it comes to reverse mortgages:
- Mandatory third-party counseling ensures borrowers understand the process and their obligations.
- Non-recourse loan protections guarantee that you or your heirs never owe more than the home is worth.
- The Washington State Department of Financial Institutions (DFI) oversees mortgage professionals and ensures fair lending practices.
Benefits of a HECM Reverse Mortgage for Washington Seniors
- Financial Flexibility: Convert home equity into cash for retirement, medical expenses, or home upgrades.
- No Monthly Mortgage Payments: You won’t make any payments as long as you live in the home and meet loan terms.
- Stay in Your Home: Age in place with dignity and independence.
- Tax-Free Proceeds: Reverse mortgage funds are generally not considered taxable income.
- Line of Credit Growth: Unused credit line grows over time, increasing your available funds.
Important Considerations
- You must continue to pay property taxes, homeowners insurance, and maintain the home.
- The loan becomes due when the last borrower leaves the home.
- Heirs will have the option to repay the loan and keep the home, or sell the home and keep the remaining equity.
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Learn If a HECM Reverse Mortgage Is Right for You
Reverse Mortgage Frequently Asked Questions
2. Am I eligible for a reverse mortgage?
To qualify, you must be:
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62 years or older
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Own your home or have substantial equity
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Live in the home as your primary residence
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Able to maintain the home and keep up with property taxes and insurance
Eligibility may vary slightly between HECM reverse mortgages (FHA-backed) and proprietary reverse mortgages.
3. How does a reverse mortgage work?
Once approved, a reverse mortgage allows you to receive cash payments, a lump sum, or a line of credit using the equity in your home. You continue living in your property, and the loan is repaid when you move, sell the home, or pass away.
4. How much money can I get from a reverse mortgage?
The amount depends on your:
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Age
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Home’s value
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Current interest rates
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Type of reverse mortgage
Homeowners often qualify for higher payouts due to higher property values.
The main types include:
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HECM (Home Equity Conversion Mortgage) – backed by the FHA
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Proprietary Reverse Mortgages – private “jumbo” loans for high-value homes
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Single-Purpose Reverse Mortgages – offered by nonprofits or local programs for specific uses like home repairs or property taxes
In addition to age and residency, you’ll need to:
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Complete HUD-approved counseling
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Pass a financial assessment
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Live in an eligible property type (single-family, condo, or certain manufactured homes)
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Maintain the property and stay current on taxes and insurance
7. Do I still own my home with a reverse mortgage?
Yes! With a reverse mortgage, you retain ownership of your home. You’re simply using your equity to fund your retirement, while continuing to live there.
8. Is a reverse mortgage a good idea for seniors?
For many retirees, a reverse mortgage is a smart way to access tax-free funds, especially with high property values and rising living costs. It’s ideal for those who want to age in place while boosting retirement income.
When you pass away, your heirs can:
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Sell the home to repay the loan and keep the remaining equity
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Refinance the reverse mortgage
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Walk away if the home is worth less than the loan balance (thanks to non-recourse protection)
10. How do I apply for a reverse mortgage?
Start by contacting a licensed reverse mortgage specialist. They’ll walk you through a free consultation, eligibility review, and the application process, including home appraisal, counseling, and closing.
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CONTACT
NML#: 135622
Branch#: 135622
Office: 12230 El Camino Real, Suite 100
San Diego, CA 92130
Consumers in Texas: Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department's website at www.sml.texas.gov. A toll-free consumer hotline is available at (877) 276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department's website at www.sml.texas.gov