HECM (Home Equity Conversion Mortgage)
The FHA-insured reverse mortgage that lets homeowners 62 and older turn home equity into cash.
What does hecm mean?
A HECM pays the homeowner from their equity — as a lump sum, line of credit or monthly payments — with no required monthly repayment; the balance is repaid when the home is sold or vacated. For 2026 the maximum home value used is $1,249,125 nationwide.
Related terms
HECM — frequently asked
What is a HECM reverse mortgage?
A Home Equity Conversion Mortgage is the FHA-insured reverse mortgage. It lets homeowners 62+ convert home equity into tax-free cash — lump sum, line of credit or monthly payments — with no monthly payment due while they live there.
Who qualifies for a HECM?
You must be at least 62, own the home outright or have significant equity, live in it as your primary residence, keep up taxes and insurance, and complete HUD-approved counseling. The amount available rises with age and home value.