— REFINANCE
Reverse Mortgage (HECM)
Refinance Program
Access your home equity with a federally insured reverse mortgage designed for eligible homeowners age 62 and older in Hawaii and other markets where Pacific Home Loans is licensed.
— ABOUT Reverse Mortgages
Reverse Mortgage (HECM)
Refinance in Hawaii
A reverse mortgage – formally known as a Home Equity Conversion Mortgage (HECM) – is a federally insured loan program that allows eligible homeowners age 62 and older to access a portion of their home equity without required monthly principal and interest payments.
HECM loans are insured by the Federal Housing Administration (FHA) and remain available nationwide, subject to FHA guidelines.
Pacific Home Loans provides reverse mortgage solutions for qualified homeowners across Oahu, Maui, the Big Island, and Kauai.
Multi-State Availability
Pacific Home Loans provides reverse mortgage solutions in multiple states, including Hawaii, California, Nevada, and other markets where we are licensed. While this page focuses on Hawaii-specific considerations, HECM reverse mortgage programs are federally insured and may be available in other states based on borrower eligibility and FHA guidelines.
— REVERSE MORTGAGE
What is a Reverse
Mortgage?
A reverse mortgage allows eligible homeowners to:
- Access a portion of their home equity
- Remain in the home as their primary residence
- Eliminate required monthly principal and interest payments
- Receive funds in flexible disbursement options
Borrowers must continue to:
- Pay property taxes
- Maintain homeowner’s insurance
- Maintain the property in good condition
Failure to meet these obligations may cause the loan to become due.
— REVERSE MORTGAGES
Reverse Mortgage
Life Expectancy Set-Aside
As part of the FHA reverse mortgage process, borrowers complete a financial assessment. If the financial review identifies limited monthly income or a history of late property tax or homeowners insurance payments, FHA guidelines may require a Life Expectancy Set-Aside (LESA).
What Is a LESA?
A Life Expectancy Set-Aside (LESA) is a protective feature built into the FHA-insured reverse mortgage program. Instead of declining the loan due to financial concerns, a portion of your available reverse mortgage proceeds may be reserved to pay certain property-related expenses on your behalf.
What Does a LESA Cover?
Funds may be set aside to pay property taxes, homeowners insurance, and flood insurance (if required). These payments are made directly when due to help keep the loan in good standing.
How a LESA May Help
- Allows certain borrowers to qualify even with past credit challenges
- Helps ensure property taxes and insurance remain current
- Reduces stress by automating required property payments
- Supports long-term loan stability
Financial Impact of a LESA
Because funds are reserved from your available reverse mortgage proceeds, you may receive less cash at closing or your available line of credit may be reduced. A LESA is not a penalty – it is a safeguard designed to protect both the homeowner and the loan.
— REVERSE MORTGAGES
Reverse Mortgage
Program Details
How Reverse Mortgage Funds May Be Received
Reverse mortgage proceeds may be structured as a lump sum, monthly payments, a line of credit, or a combination of these options. The amount available depends on borrower age, home value, current interest rates, and FHA lending limits.
Unused line-of-credit funds may grow over time in accordance with program terms.
Reverse Mortgage Refinance
A reverse mortgage may be used to refinance an existing traditional mortgage, refinance an existing reverse mortgage (if beneficial), improve monthly cash flow during retirement, and access equity for long-term financial planning.
→ Hawaii Mortgage Refinance Options
Eligibility Requirements
To qualify for a HECM reverse mortgage, borrowers must:
- Be 62 years of age or older
- Occupy the property as a primary residence
- Have sufficient home equity
- Complete HUD-approved counseling
- Meet FHA financial assessment requirements
Important Considerations
A reverse mortgage is a long-term financial decision.
- The loan balance increases over time
- Interest accrues on the outstanding balance
- Mortgage insurance premiums and closing costs apply
- The loan becomes due when the borrower no longer occupies the home as a primary residence
When the reverse mortgage becomes due, heirs may repay the outstanding loan balance and retain the property, or sell the home and use proceeds to satisfy the loan. Because HECM loans are non-recourse, repayment will not exceed the home’s value at the time of sale, subject to FHA guidelines. Borrowers retain title to the property but remain responsible for taxes, insurance, and maintenance.
For Higher-Value Properties
For homeowners with property values exceeding FHA lending limits, a proprietary jumbo reverse mortgage may provide access to greater equity.
→ Hawaii Jumbo Reverse Mortgage
Is a Reverse Mortgage Right for You?
We encourage borrowers to consult a HUD-approved counselor, a financial advisor, a tax professional, and an attorney. Our team is available to help you evaluate whether a reverse mortgage aligns with your retirement and financial goals.
