Paying for Care & Services  
Home Equity Conversion Mortgage

Rhode Islandís Home Equity Conversion Mortgage (HECM) program allows seniors to borrow against the equity in their homes. The loan is repaid when the house is sold, or when the owner/borrower ceases to live in it. This type of program is sometimes referred to as a reverse mortgage program.

Under HECM, borrowers must be 62 or older and have annual incomes below $93,300. They must live in new or existing one-to-four family homes or FHA-approved condominiums.

HECM loans are at a variable interest rate. Borrowers may choose to receive lump sum payments, monthly payments, a line of credit, or a combination of payments.

HECM is only one type of reverse mortgage. Other financial institutions offer this type of program.

For additional information on HECM, call Rhode Island Housing, 44 Washington Street, Providence, RI 02903 at 450-1344 or 1-800-427-5560 for additional information. The web site is

RI Housing also works with various non-profit organizations to prevent elder consumers from becoming victims of predatory loan practices. Counciling is available for consumers looking for a loan, refinancing, have fallen behind on mortgage payments or are facing foreclosure.

For information, call 1-800-436-3180 or go to