HECM Reverse Mortgage
A HECM is the FHA-insured reverse mortgage program for eligible homeowners and requires HUD-approved reverse mortgage counseling before closing.
Before you decide
- HECM stands for Home Equity Conversion Mortgage.
- Counseling is a required step before the loan can close.
- Eligibility depends on borrower age, occupancy, equity, property type, financial assessment, and program rules.
What A HECM Is
The HECM program is the most recognized reverse mortgage path because it is FHA-insured and has standardized federal rules. It is still a mortgage, and eligibility must be reviewed before any borrower relies on the idea.
Counseling
The counseling step is meant to make sure the borrower understands costs, obligations, alternatives, and consequences. It is not a sales call and it is not the same thing as loan approval.
California Context
California homeowners should review state licensing, property-value context, taxes, insurance, and local alternatives before deciding whether a HECM is the best structure.
Common Questions
Can a reverse mortgage pay off my existing mortgage?
A reverse mortgage may pay off an existing mortgage at closing if the homeowner qualifies and available proceeds are sufficient after program calculations, liens, and costs.
Do I still own my home with a reverse mortgage?
The homeowner keeps title to the home, but the reverse mortgage is a loan secured by the property and the borrower must keep meeting loan obligations.
When should a homeowner avoid a reverse mortgage?
A reverse mortgage may not fit if the homeowner expects to move soon, cannot keep taxes and insurance current, cannot maintain the home, or has better alternatives after reviewing the full household plan.
Keep reading
Reverse mortgage approval depends on age, living in the home, property type, equity, counseling, financial review, and the homeowner's ability to keep loan obligations current.
Can a Reverse Mortgage Pay Off an Existing Mortgage?A reverse mortgage may pay off an existing mortgage at closing if the homeowner qualifies and has enough available proceeds after program calculations and costs.
Reverse Mortgage CostsReverse mortgage costs can include origination, mortgage insurance for HECM loans, third-party closing costs, servicing-related costs, and interest according to the loan terms.
Where this information comes from
U.S. Department of Housing and Urban Development - official
https://www.hud.gov/program_offices/housing/sfh/hecmU.S. Department of Housing and Urban Development - official
https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1Consumer Financial Protection Bureau - regulator
https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/Reviewed by Nick Cunningham, NMLS #907393. Last reviewed 2026-06-07.
Educational information only. Not personal financial, legal, tax, or benefits advice.