A Home Equity Conversion Mortgage (HECM) is the FHA‑insured reverse mortgage program designed for homeowners age 62 and older who want to unlock a portion of their home’s equity without taking on a monthly mortgage payment. Instead of making principal and interest payments each month, the loan balance is repaid later, typically when the home is sold, the borrower moves out, or the last borrower passes away. This allows many seniors to supplement retirement income, cover healthcare or living expenses, or fund home improvements while continuing to live in the home they love.

With a HECM, borrowers keep title to their home and remain responsible for property taxes, homeowners insurance, and basic maintenance, as well as living in the home as their primary residence. Funds can be customized to their needs and may be received as a lump sum, fixed monthly payments, a line of credit, or a combination of options, providing flexibility in how and when equity is accessed. Because HECMs are regulated and insured, borrowers are required to complete a counseling session with a HUD‑approved counselor so they fully understand the terms, responsibilities, and alternatives before moving forward.