HECM Reverse Mortgage in Hawaii
Learn how HECM reverse mortgages work for Hawaiʻi seniors. FHA-insured, kupuna-friendly guidance with payout options, protections, and a free calculator.
Local Reverse Mortgage Guidance You Can Trust
Honest, Easy-to-Understand Advice for Kupuna & ʻOhana
AI-Powered Estimates Personalized for Hawaiʻi Homeowners
The FHA-Insured Reverse Mortgage Designed for Kupuna
Federally insured by the FHA, HECM loans offer Hawaiʻi seniors safe, flexible ways to use home equity for retirement, caregiving, or everyday living.
What Is a HECM Reverse Mortgage?
A HECM is a federally insured reverse mortgage that allows you to:
- Access tax-free home equity
- Receive funds as a lump sum, monthly payments, a growing line of credit, or a combination
- Stay in your home
- Make no monthly mortgage payments
- Keep full ownership and remain on the title
The loan is repaid later — usually when you move out or pass away.
Free HECM Calculator
Below is an example of what affects your HECM estimate:
Home value
Higher home values = higher potential payouts.
Age of youngest borrower
Older borrowers qualify for more funds.
Mortgage balance
A HECM must first pay off any existing mortgage.
Interest rates
Affects long-term projections.
Property type
Single-family, condo, townhouse, or leasehold.
FHA lending limits
Updated yearly — affects max payout.
Hawaiʻi-specific property factors
Local market values influence your results.
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.
Why HECM Is Popular in Hawaiʻi
Hawaiʻi homeowners benefit greatly from HECM because:
- Home values are higher than on the mainland
- Many kupuna want to age in place
- Cost of living is rising
- ʻOhana often shares caregiving responsibilities
- Condos and multigenerational homes are common
A HECM provides flexibility, steady support, and long-term financial peace.
How HECM Works
You must be 62+
If two people apply, the youngest borrower must be 62 or older.
Your home must be your primary residence
You must live in it most of the year.
Your home must meet FHA guidelines
Most Hawaiʻi single-family homes qualify.
Many condos do as well, even without full FHA approval through single-unit approval.
No monthly mortgage payments requiredYour home must meet FHA guidelines
You continue paying property taxes, insurance, and basic upkeep.
You choose how to receive the funds
- Monthly
- Lump sum
- Growing line of credit
- Combination
Ready To Take Control Of Your Retirement?
Ensure you make informed financial decisions by consulting with a trusted reverse mortgage advisor familiar with Hawaii’s unique real estate landscape and financial conditions.
HECM Payout Options
A HECM reverse mortgage in Hawaiʻi offers four main payout structures:
1. Line of Credit (Most popular in Hawaiʻi)
- Grows over time
- Use only when needed
- Flexible for emergencies or long-term planning
2. Monthly Payments
- Predictable income each month
- Helps with living expenses, caregiving, and home upkeep
3. Lump Sum
- One-time payout
- Useful for paying off a traditional mortgage or large expenses
4. Combination Plan
- Mix monthly, lump sum, and line of credit
- Fully customizable for your needs
HECM Eligibility Requirements
To qualify, you must meet:
Age requirement
62 or older.
Residence requirement
Home must be your primary residence.
Property type
Eligible homes include:
- Single-family
- Townhomes
- Many condos
- Select leaseholds
Equity requirements
You need enough home equity for the numbers to work.
HECM Protections for Hawaiʻi Seniors
Non-recourse protection
You never owe more than the home is worth.
Spousal protections
Non-borrowing spouses may stay in the home.
You stay on title
Your home remains in your name.
Your heirs stay protected
ʻOhana keeps all remaining equity after the loan is paid.
HUD counseling required
Every borrower must complete a short counseling session so you fully understand the program.
HECM vs. Other Reverse Mortgage Types in Hawaiʻi
HECM (FHA-Insured)
- Most common
- Most protections
- Ideal for most kupuna
- Moderate loan limits
Proprietary / Jumbo
- Not FHA-insured
- Higher limits (great for high-value Hawaiʻi homes)
- More flexible property rules
Single-Purpose Reverse Mortgage
- Least common
- Offered by some counties / nonprofits
- Can only be used for specific needs (repairs or taxes)
HECM is typically the safest and most trusted option for Hawaiʻi homeowners.
Get Your Personalized Hawaiʻi Reverse Mortgage Estimate
Clear, caring guidance — with local expertise and AI precision. See your options in under a minute.
- Warm guidance.
- FHA-insured security.
- Designed for Hawaiʻi kupuna & families.
FAQs: HECM Reverse Mortgage Hawaiʻi
1. What makes a HECM different from a regular reverse mortgage?
A HECM is the only reverse mortgage insured by the FHA, which gives Hawaiʻi homeowners added protections such as non-recourse safety, spousal protections, and federally regulated guidelines.
2. Is a HECM reverse mortgage safe for Hawaiʻi seniors?
Yes. Because HECM loans are federally insured, borrowers receive strong consumer protections, required counseling, and safeguards to prevent losing more than the home’s value.
3. Do I still own my home if I choose a HECM?
Yes. You remain the homeowner, stay on the title, and maintain full ownership as long as you follow basic requirements (live in the home, maintain it, pay taxes & insurance).
4. What is the minimum age for a HECM in Hawaiʻi?
At least 62 years old.
If two people are applying, the youngest borrower must be 62+.
5. Can Hawaiʻi condos qualify for a HECM?
Many can. Condos may qualify if they are:
- On the FHA-approved list, or
- Eligible for Single-Unit Approval
This is very common in Hawaiʻi, especially on Oʻahu and Maui.
6. What happens to my home when I pass away?
Your ʻohana decides what happens next:
- Keep the home by repaying the loan
- Refinance
- Sell the home and keep the remaining equity
- Walk away if the loan exceeds the home’s value (non-recourse protection)
Your heirs never inherit debt.
7. How much money can I get from a HECM?
Your loan amount depends on:
- Your home value
- Age of the youngest borrower
- Interest rates
- Existing mortgage balance
- FHA loan limits
This is why using your HECM calculator is the best first step.
8. Are HECM reverse mortgage funds taxable?
No. All HECM funds — lump sum, monthly payments, or line of credit — are tax-free because they come from your home equity, not income.
9. What if I still owe money on my current mortgage?
A HECM will first pay off your existing mortgage, removing your monthly mortgage payments. Any remaining equity becomes available to you as HECM funds.
10. Can I lose my home with a HECM?
As long as you:
- Live in the home as your primary residence
- Pay property taxes & insurance
- Maintain the property
You will not lose your home.
These rules are part of FHA’s protections to help keep kupuna safe.
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AI Reverse Mortgage Hawaii
Clear Reverse Mortgage Guidance for Hawaii Seniors
Percy Ihara
Reverse Mortgage Specialist
NML#: 582944
Phone: +1(808)234-3117
Email: percy@c2hawaii.com
Address: Pauahi Tower, 1003 Bishop St Suite 2700-42, Honolulu, HI 96813
Serving ALL Hawaiian Islands: Kauai, Oahu, Molokai, Lanai, Maui, and Big Island