Think of a Home Equity Conversion Mortgage (HECM) as a home-equity loan that pays you instead of you paying it. You stay in the home, title in your name, and choose how to receive the proceeds: monthly lifetime payments, a lump sum, a line of credit, or a mix. The loan balance grows slowly over time because you're not making payments; instead, interest is added to the balance. When you permanently move out or pass away, the home is sold, the loan is repaid, and any leftover equity goes to you or your heirs.

Because Social Security and pension income are fixed, many retirees use the tax-free funds to plug the gap between 3% COLA raises and 8% annual jumps in Medicare Part B premiums, prescription copays, or property-tax reassessments. One NMHL client in Fort Worth increased her monthly cash flow by $1,220, which allowed her to keep her long-term-care insurance in force and avoid dipping into an IRA that would have triggered higher Medicare surcharges.

Big banks exited the reverse space after 2012 because servicing is labor-intensive and profit margins are thinner than on forward mortgages. That leaves specialized lenders like NMHL who service 100% of our own HECMs, so your questions are answered by the same team that closed your loan, not an overseas call center.

We also carry both HUD's standard HECM and proprietary jumbo reverses for high-value homes, giving you more choices than a single-bank loan officer who might only sell one product. Because we operate in 29 states, we know the local counseling agencies and can fast-track your required HUD certificate if you're facing a tax-sale deadline or large medical bill.

Day 1: 15-minute phone intake—age verification, estimated home value, current loan payoff. Day 2–3: Official HECM application signed; we order FHA appraisal and title. Day 7: HUD counseling completed (we give you a list of five approved phone counselors). Day 14: Appraisal back; we lock rate and disclose final numbers. Day 21: Underwriting clears conditions—usually limited to proof of property taxes paid and homeowner's insurance. Day 30: Closing at your home or attorney's office; three-day rescission follows. Day 34: First funds available via wire or check.

Clients choosing the line-of-credit option can leave the money untouched and watch it grow at the current variable rate plus 1.25% margin—effectively creating a higher safe yield than most CDs or money-market accounts today.

Federal rules require lenders to set aside part of the loan to pay your property taxes and insurance if your residual income is tight. NMHL calls this a Life-Expectancy Set-Aside (LESA); it functions like an escrow account, so you never worry about a tax sale. We also run a 'worst-case' scenario showing what happens if you live to 100 and interest rates rise the maximum 2% per year—full transparency before you sign.

Additionally, NMHL provides a free annual wellness call for every reverse client. If property taxes jump or your homeowner's policy is non-renewed, we adjust the set-aside or explore state tax-freeze programs so you stay protected. Our default rate is 0.3% versus the industry 2.1% because we treat the loan as a relationship, not a transaction.

Maria, 72, San Diego: Widowed at 70, she lost one of two Social Security checks and faced a $900 monthly shortfall. A HECM line of credit provided a $60,000 standby reserve; she tapped $8,000 for dental implants and left the rest to grow. Two years later the unused credit has risen to $68,000, giving her a cushion that outpaced inflation.

James & Carol, 78 & 76, Charleston: Their $1.4 M beach cottage had a small forward mortgage. NMHL's jumbo reverse paid off the $220,000 balance and delivered a $400,000 lump sum—enough to gift a down-payment to a granddaughter and install an elevator so they could stay despite mobility issues.

Robert, 69, Denver: A self-employed consultant with irregular income, he worried about required minimum distributions pushing him into a higher tax bracket. He took a monthly tenure payment of $1,100, allowing him to reduce IRA withdrawals and stay under the Medicare IRMAA threshold, saving $3,600 a year in Part B surcharges.