HECM: What the Name Means | ClarityKeep
HECM
HECM means Home Equity Conversion Mortgage, a reverse mortgage insured by the Federal Housing Administration.
What the name tells you
A Home Equity Conversion Mortgage is a type of reverse mortgage. The Federal Housing Administration, or FHA, insures it.
That insurance does not decide whether the loan fits your needs. Before you choose, compare the costs and your duties as a homeowner.
The Consumer Financial Protection Bureau’s glossary explains how HECMs differ from private reverse mortgages.
A useful next question
Ask a housing counselor how the loan would affect your plans to stay in the home. Bring questions about costs and other ways to meet your goal.
Read what happens in housing counseling or start with our reverse mortgage guide.