Reverse Mortgage Smart

A Home Equity Conversion Mortgage (HECM) is a reverse mortgage made by a lender or bank, insured by the Federal Housing Administration (FHA). Approximately 90% of reverse mortgages made are HECM reverse mortgages.

HECM reverse mortgages can be used by borrowers at least 62 years of age to convert the equity in their home into monthly payments or a line of credit.

To obtain a HECM reverse mortgage, a homeowner must first attend a counseling session provided by an approved counselor. This session will provide info on reverse mortgages, particularly with regard to a borrower’s financial and legal obligations. A list of HUD-approved HECM counselors can be found here.

Please visit our FAQ page for additional information on HECM reverse mortgages.