Home Equity Conversion Mortgages (HECM)

Federal Housing Administration (FHA) in Housing
December 19, 2018

Overview

The Home Equity Conversion Mortgage (HECM) is Federal Housing Administration's (FHA) reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

Administration

Home Equity Conversion Mortgages (HECM) is administered by Federal Housing Administration (FHA).

Program Requirements:

You must:

  • Be 62 years of age or older
  • Own the property outright or have a small mortgage balance
  • Occupy the property as your principal residence
  • Not be delinquent on any federal debt
  • Participate in a consumer information session given by an approved HECM counselor

The following eligible property types must meet all FHA property standards and flood requirements:

  • Single family home or 1-4 unit home with one unit occupied by the borrower
  • U.S. Department of Housing and Urban Development (HUD) approved condominium
  • Manufactured home that meets FHA requirements

Application Details

To obtain a HUD Home Equity Conversion Mortgage, contact a HUD-approved HECM lender.

Contact:

1-800-225-5342

Explore More Benefits

Adjustable Rate Mortgage Insurance
Architectural Barriers Act Enforcement
Early Doctoral Student Research Grants
Housing Opportunities for Persons With AIDS (HOPWA)
Cooperative Endangered Species Conservation Fund
Child and Adult Care Food Program (CACFP)
Capital Construction Fund Program
Medicaid Program
State Children's Health Insurance Program
Armed Forces Tax Benefits

Welfare Info