Home Equity Conversion Mortgage (HECM)

A Home Equity Conversion Mortgage (HECM) is a type of federally insured reverse mortgage that allows seniors aged 62 or older to borrow against the equity in their homes. Instead of making monthly payments, the borrower receives funds as a lump sum, line of credit, or monthly payments. The loan is repaid only when the homeowner sells the house, moves out permanently, or passes away. HECMs are designed to help seniors access their home equity to cover expenses or improve cash flow, with the loan remaining collateralized by the property and regulated for safety and transparency.