A plain-English walkthrough of the HECM process — designed for Utah homeowners 62 and older who want to understand the mechanics before talking to a lender.
Watch: Reverse Mortgage & Retirement Cash Flow
Reverse Mortgage & Retirement Cash Flow
How Utah retirees use a reverse mortgage to strengthen monthly cash flow.
The HECM in one paragraph
A Home Equity Conversion Mortgage (HECM) is a federally insured loan available to Utah homeowners 62 and older. It allows a portion of home equity to be accessed as cash, a line of credit, monthly payments, or any combination — with no required monthly principal-and-interest payment. The loan is repaid when the home is sold, refinanced, or when the last borrower permanently leaves the home. A reverse mortgage is a conservative cash-flow tool when used as part of a planned retirement strategy.
The seven-step HECM roadmap
- Initial conversationA free, no-obligation call to understand whether a HECM realistically fits your goals. Education, not application.
- HUD-approved counselingIndependent counseling confirms you understand the program, its costs, and its alternatives.
- Application and disclosuresYou see the projected principal limit, estimated costs, and amortization assumptions in writing.
- Appraisal and underwritingA licensed Utah appraiser inspects the home. Underwriting reviews age, value, occupancy, and property-charge capacity.
- ClosingSigning at a Utah title company. A three-business-day federal rescission period follows before funds disburse.
- Living with the loanYou continue to own the home, pay taxes and insurance, and maintain the property. Any HECM line of credit grows on the unused portion.
- Loan repaymentRepaid when the home is sold or the last borrower permanently leaves. Remaining equity belongs to you or your heirs. Non-recourse protection applies.
Step 1 — Initial conversation
Most Utah homeowners begin with a free, no-obligation call to understand whether a HECM realistically fits their goals. This is education, not application.
Step 2 — HUD-approved counseling
Before applying, every borrower must complete counseling with an independent HUD-approved counselor. This is a consumer-protection requirement designed to confirm you understand the program, its costs, and its alternatives.
Step 3 — Application and disclosures
Once counseling is complete, the formal application includes required federal and Utah-specific disclosures. You will see the projected principal limit, estimated costs, and the amortization assumptions in writing.
Step 4 — Appraisal and underwriting
A licensed Utah appraiser inspects and values the home. Underwriting reviews your age, the appraised value (or HUD lending limit), property condition, occupancy, and your ability to meet ongoing tax-and-insurance obligations.
Step 5 — Closing
Closing happens at a Utah title company. After a three-business-day federal right-of-rescission period, the loan funds. Any existing mortgage is paid off, and the remaining proceeds are disbursed in the structure you selected.
Step 6 — Living with the loan
You continue to live in the home, pay property taxes and insurance, and maintain the property. The loan balance grows over time as interest accrues, while a HECM line-of-credit (if selected) grows on its unused portion at the note rate plus mortgage insurance premium.
Step 7 — Loan repayment
When the home is sold or the last borrower permanently leaves, the loan balance is repaid. Any remaining equity belongs to you or your heirs. HECMs are non-recourse: heirs are never personally liable for more than the value of the home.
Learn It. Watch It. Download It.
Reverse Mortgage Explained
Tres Miller walks through how a reverse mortgage works for Utah homeowners 62+.
A concise entry-level overview for Utah homeowners 62+ beginning their research: what a HECM is, who may qualify, how proceeds can be taken, the obligations that continue, and where to go next.
Educational only. Not legal, tax, or financial advice.
Related Resources
Reverse Mortgage Myths
The most common reverse mortgage myths — and the truth behind each one.
Is a Reverse Mortgage a Bad Idea?
When a reverse mortgage is the wrong tool — and when it's the right one.
Will I Lose My Home with a Reverse Mortgage?
How ownership actually works on a reverse mortgage — you keep title.
A broad home-equity strategy resource for Utah homeowners 62+ — comparing staying put, HELOCs, refinancing, downsizing, selling, and a reverse mortgage as part of a complete retirement plan.
Educational only. Not legal, tax, or financial advice.
Verify eligibility, understand the benefits, gather documents, get pre-approved, and shop for a home using the VA benefit.
Educational only. Not legal, tax, or financial advice.
Zero-down USDA financing for eligible rural Utah properties — eligibility, income limits, and the process end-to-end.
Educational only. Not legal, tax, or financial advice.