Neighborhood Housing Services of New Haven

Home Equity Conversion Mortgages

A Home Equity Conversion Mortgage (HECM) is a mortgage that allows elderly homeowners to draw upon the equity they have built up in their homes.  Unlike a home equity loan where you have to make monthly payments for a number of years, no repayment of the HECM is required until you either sell the home or vacate it for other reasons.  At that time, the accrued interest plus what the lender has paid you over the years become due and payable.

Any homeowner over 62 years of age is eligible for a HECM.  However, the homeowner must either own his or her home free and clear or have a very low outstanding mortgage balance.

HECMs make it possible for older members of our community to remain in their homes and retain the ability to undertake repairs and maintain their houses.

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