Home Equity Conversion Mortgages, or ‘HECM’s’ are a type of reverse mortgage insured by the Federal Housing Administration (FHA). Homeowners aged 62 and older can convert part of their home equity into cash while still living in their property. There are many advantages to HECM’s and some people ultimately decide it’s not the best choice and may pursue other options. Getting counseling from a HUD Certified HECM Counselor is mandatory and helps senior homeowners assess whether a HECM is the best option for them. The HECM Counselor will also discuss possible alternatives for the homeowners.

An advantage to a HECM is there are no monthly payments. The loan becomes due and payable when a maturity event occurs. The HECM program provides protections for borrowers including mortgage insurance and non-recourse provisions. 

If you are interested in finding out more about HECM mortgages, feel free to call our office at (410) 543-4626.