What is a HECM loan?

A Home Equity Conversion Mortgage (HECM) is a specific type of reverse mortgage designed for seniors, allowing them to convert part of their home equity into loan proceeds while retaining ownership of their home. This program is particularly beneficial for older homeowners who may have limited income but significant equity in their homes. By enabling access to funds without requiring monthly mortgage payments, HECMs can help seniors improve their cash flow for essentials, supplements, or other expenses. The key feature of a HECM is that repayment is typically deferred until the homeowner moves out of the home, sells it, or passes away, making it a unique financial product tailored for aging homeowners.