Reverse Mortgage Line of Credit Strategy (Hawaii)

• Line of credit grows when unused
• Funds are accessed only when needed
• No required monthly mortgage payments
• Often safer than lump sum strategies
• Especially powerful in high-value Hawaii homes

Unused portions of the line of credit:

• Grow at the same effective rate as the loan’s interest + FHA insurance
• Increase borrowing power over time

This growth is contractual and not tied to home value or appreciation.

1. Emergency Reserve

Instead of keeping large cash balances:

• Use the line only when needed
• Let retirement assets stay invested

2. Market Downturn Protection

During market declines:

• Draw from the line
• Avoid selling investments at a loss

This strategy is often called a “buffer asset” approach.

3. Supplemental Income Planning

Seniors may:

• Draw small amounts annually
• Combine with Social Security
• Preserve portfolio longevity

4. Long-Term Care at Home

Many Hawaii seniors use funds to:

• Pay for in-home care
• Avoid facility placement
• Age in place longer

Borrowers may:

• Pay interest voluntarily
• Reduce balance growth
• Preserve equity

This is optional and flexible—never required.

This approach is ideal for:

• Long-term homeowners
• Market-sensitive retirees
• Seniors prioritizing flexibility
• Families focused on aging in place

• U.S. Department of Housing and Urban Development (HUD)
• FHA HECM Program Handbook
• Consumer Financial Protection Bureau (CFPB)

Not every reverse mortgage Hawaii borrower should use a line of credit—but for the right homeowner, it can be a game-changing planning tool.

With trusted local loan guidance and Hawaii-specific reverse mortgage expertise, you can:

• See how your line of credit could grow
• Compare it against lump sum options
• Understand risks before committing

No pressure. Just education—so you can make confident decisions.