If you've started researching reverse mortgages, you've run into the acronym within minutes: HECM. So — what is a HECM? Short answer: a Home Equity Conversion Mortgage, the FHA-insured, HUD-regulated reverse mortgage, and by far the most common kind in America. It lets homeowners — generally 62 and older — convert part of their home equity into cash without selling, without moving, and without taking on a required monthly mortgage payment. In this guide, we'll unpack what makes a HECM different from other reverse mortgages, the protections built into it, who qualifies, and how the money can reach you.
What Is a HECM, Exactly?
A HECM is a loan against your home's equity that works in the opposite direction of the mortgage you're used to. Instead of you sending the lender a payment every month, the lender makes funds available to you, and the balance is repaid later — typically when the last borrower permanently leaves the home.
Three features define it:
- It's FHA-insured and HUD-regulated. The Federal Housing Administration insures every HECM, and the program's rules are set by the U.S. Department of Housing and Urban Development. You can read the program's official description at HUD's HECM program page.
- You keep title and ownership. The lender records a lien, just like a regular mortgage — but the home stays yours. Your obligations are to keep current on property taxes and homeowners insurance, maintain the home, and live in it as your primary residence.
- No required monthly mortgage payment. Interest is added to the balance over time instead of being paid monthly, so the balance grows while you live in the home.
If you want the full mechanics — the timeline, the repayment, the equity math — our pillar guide on how a reverse mortgage works covers it end to end, and our HECM program page summarizes the essentials.
What Is a HECM Compared to Other Reverse Mortgages?
"Reverse mortgage" is the category; the HECM is one member of it — the federally insured one. The main alternative is the proprietary (or "jumbo") reverse mortgage: a private loan, not FHA-insured, built for higher-value homes. Here's why the distinction matters:
- The HECM has a value ceiling. For 2026, the HECM maximum claim amount is $1,249,125 — home value above that doesn't count in the calculation. Homes valued higher are where proprietary programs come in.
- Age minimums differ. A HECM is generally for homeowners 62 and older; some proprietary programs are available from age 55.
- The protections differ. The HECM's consumer safeguards — FHA insurance, mandatory independent counseling, the non-recourse guarantee — are what most homeowners choose it for.
The Protections Built Into a HECM
The HECM is one of the most heavily safeguarded consumer loans available, and the protections are worth knowing by name:
- Non-recourse guarantee. Neither you nor your heirs will ever owe more than the home's value when the loan is repaid. If the balance outgrows the home's worth, FHA insurance covers the shortfall.
- Required independent counseling. Before any HECM can proceed, you meet with an independent HUD-approved counselor whose only job is making sure you understand the loan, the costs, and your alternatives.
- Non-borrowing spouse protections. An eligible spouse who isn't on the loan may remain in the home after the borrower's death, provided HUD's conditions are met.
- Clear options for heirs. When the loan comes due, heirs can keep the home by repaying the loan (the balance or 95% of appraised value, whichever is less), sell it and keep the remaining equity, or walk away owing nothing.
Who Qualifies for a HECM?
The basics are straightforward: you'll generally need to be 62 or older (the youngest borrower sets the number), live in the home as your primary residence, and have sufficient equity — enough that the HECM can pay off any existing mortgage at closing. Lenders also complete a financial assessment, reviewing your credit history, income, and property charges to confirm the loan is sustainable. It isn't a pass-or-fail credit-score hurdle — it's a check that you're set up to keep current on taxes, insurance, and upkeep, which protects you as much as the lender.
How You Receive the Money
A HECM offers four payout structures, and you can mix them:
- Lump sum — one payout at closing.
- Monthly payments — for a set term, or for as long as you live in the home.
- Line of credit — draw when you need to; the unused portion grows over time.
- Combination — for example, pay off your mortgage, take some cash, keep the rest as a growing credit line.
And here's the lesser-known trick up the HECM's sleeve: it can also buy a home. The HECM for Purchase lets buyers 62 and older combine a down payment with HECM proceeds to purchase a new primary residence in a single transaction.
Frequently Asked Questions
Is a HECM the same thing as a reverse mortgage?
A HECM is a type of reverse mortgage — the FHA-insured, HUD-regulated kind, and the most common by far. Proprietary "jumbo" reverse mortgages are the private alternative, typically used for homes valued above the 2026 HECM limit of $1,249,125.
What does the FHA insurance on a HECM actually do?
It funds the non-recourse guarantee: you and your heirs never owe more than the home's value when the loan is repaid, with the insurance covering any shortfall. It's the backbone of the HECM's consumer protections.
Do I give up ownership of my home with a HECM?
No. You keep title and ownership. The lender records a lien to secure the loan, exactly as a traditional mortgage does, while you continue living in and owning your home — keeping up with taxes, insurance, maintenance, and residency.
Is counseling really required for a HECM?
Yes — a session with an independent, HUD-approved counselor is required before any HECM. It's lender-neutral, it exists for your benefit, and it's a genuinely useful check that you understand the program and your alternatives.
The Bottom Line
So, what is a HECM? It's the reverse mortgage with the federal government's insurance behind it: HUD-regulated, generally for homeowners 62 and older, with no required monthly mortgage payment, flexible payout options, and a stack of built-in protections — non-recourse, mandatory counseling, spousal safeguards, and clear choices for your heirs. You keep your title, you keep your home, and you keep the obligations that come with it. For most homeowners exploring a reverse mortgage, the HECM is where the conversation starts.
Want the whole picture in one sitting? Our free Reverse Mortgage Guide walks through the HECM in plain English — no jargon, no pressure.
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