H.E.C.M stands for: Home Equity Conversion Mortgage.

The H.E.C.M. is the ONLY Reverse Mortgage insured by the federal government.  HECM loans are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). 

The FHA tells HECM Reverse Mortgage lenders how much tax-free* money they can lend you, based on your age, home value and current interest rates.  The HECM program limits your loan costs, and the FHA guarantees that HECM Reverse Mortgage lenders will meet their obligations to you. 

H.E.C.M. loans are the lowest-cost multipurpose Reverse Mortgage available, and in most cases they provide the largest total cash benefits, as well.

A significant feature of the HECM Reverse Mortgage is that it is insured by the government’s FHA insurance program.Another advantage to the HECM Reverse Mortgage is that you are guaranteed to retain ownership of your home for life. 

This program ensures that you will receive all payments due to you as long as you live.  It also ensures that the bank will receive full repayment of your loan balance, even if it exceeds the value of your home.  This means that with a HECM Reverse Mortgage, you cannot be forced to sell or vacate your home, even if the loan balance exceeds the value of the house.  In addition, as a H.E.C.M. Reverse Mortgage borrower, you, your heirs and your estate are all protected from owing more than your home’s value, which means that no assets other than your home must be used to repay the debt whenever you, your estate or your heirs decide to sell the home.

Title remains in your name or the name of your Living Trust.  Just as in the past, you will continue to be responsible for your home's maintenance, your own property taxes and homeowners insurance. 

You may sell, move, or repay your H.E.C.M. at any time you wish with no prepayment penalties. 

Your Spouse (as long as they are a HECM co-borrower) will also maintain ownership of your home and can continue the HECM Reverse Mortgage, even after your death.  The HECM Reverse Mortgage becomes due and payable after the death of all HECM borrowers.

Your heirs will inherit your home.  How they choose to repay the loan is up to them. 

Once the HECM has been repaid, the lender retains no further claims.  All equity, along with your home’s appreciation, will pass on to your heirs according to the terms of your will or Living Trust.

The Government’s FHA insurance program protects you, your heirs, and your estate from owing more than your home’s value, which means that no assets other than your home must be used to repay the debt whenever you, your estate or your heirs decide to sell the home.

 * Please consult your tax advisor for all tax advice.