Second HECM: HECM Refinance for Current Reverse Mortgage Borrowers

If you already have a HECM, you may hear about getting a "second HECM." In FHA terms, this is a HECM-to-HECM refinance. A new HECM on the same home pays off your old HECM. It may give you more money if your home has grown in value or the FHA limit has gone up. It also brings new costs, so FHA adds protections.

How we work. Oakstone Capital Mortgage is a mortgage broker. We are not an FHA-approved lender, and we do not make or fund reverse mortgage loans. A lender that we work with makes and funds your loan and decides if you qualify. We help you apply. We compare wholesale lenders for you and show you every fee up front.

Who it may fit

• You have a HECM today and still live in the home.
• Your home value has gone up, or you want a different loan setup.
• You are not asking only for a small amount of extra money. FHA wants the new loan to help you in a real way.

What FHA requires

• Same home. The new loan must be on the same home as the old HECM.
• Cost form within 3 days. Within 3 days after you apply, the lender must give you a form (HUD-92901) with the best estimate of the total cost and how much your loan limit goes up or down.
• Counseling. You usually meet with a HUD-approved counselor again. You can skip counseling only if all of these are true: your first HECM got counseling and was started on or after August 4, 2014; you got the cost form; the extra amount you can borrow is much larger than the cost of the refinance, by the multiple FHA sets; and you are applying within 5 years of the closing of your first HECM.
• Other loans. Any non-HECM loan on the home that cannot sit behind the HECM must be paid off.
• Insurance cost. FHA may reduce the upfront insurance on a refinance, but only if at least one borrower from the old loan is on the new one. FHA does not refund insurance you paid on the old loan. Yearly insurance stays at 0.50% of the balance.
• 2026 limit. The FHA limit is $1,249,125 (HUD Mortgagee Letter 2025-22, checked October 2026).

Questions we ask before we recommend one

• How much more can you borrow, and what does the new loan cost in total?
• Will you pay the upfront insurance and fees again?
• Is there a better choice, such as keeping the HECM you have?
• Is your spouse on the loan or named as an eligible spouse?

We show you the full cost and the change in your borrowing limit in writing. If a refinance does not help you, we will say so.

Related situations

• Moving? You can buy your next home with a HECM for Purchase. Your old HECM must be paid off first.
• Surviving spouse? If a borrower has passed away and your HECM is in deferred status, you cannot do this as a HECM refinance. You may still qualify for a new loan if you meet the rules. Call us.

Next step

Not sure if a new HECM beats your current one? Call 949-800-8519 or contact us. Have your current loan statement ready. We will run the numbers and show you the cost.

Frequently asked questions

• What is a second HECM? In FHA terms, it is a HECM-to-HECM refinance. A new HECM on the same home pays off your old HECM.
• Can I have two HECMs on one home? No. A HECM has to be the first loan. The new one replaces the old one.
• Do I need counseling again? Usually yes. A narrow exception exists if your first HECM was counseled and the other tests are met.
• Will I pay FHA insurance again? FHA may lower the upfront insurance on a refinance but does not refund what you paid before. Yearly insurance stays at 0.50% of your balance.
• How do I know a refinance is worth it? You get a form that shows the total cost and how much your borrowing limit changes. If the cost is high compared to the extra you can borrow, it may not be worth it.

License and disclosures

Loans made or arranged pursuant to a California Financing Law license.

Oakstone Capital Mortgage, Irvine, California.

Oakstone Capital Mortgage NMLS #2585868

California Financing Law license number: #60DBO-194582

Steven Arroyo NMLS #1576672

Check any license at nmlsconsumeraccess.org.

Oakstone Capital Mortgage is a mortgage broker and is not an FHA-approved lender.

This website is not from or approved by HUD, FHA, or any government agency. Oakstone is not affiliated with the U.S. government.

Reverse mortgage borrowers must pay property taxes and homeowner's insurance, keep the home in good repair, and live in the home as their main home. Interest and fees are added to the loan balance. You are not required to complete a reverse mortgage just because you have received disclosures.

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