HECM

HECM refers to a reverse mortgage insured by the HUD to the FHA. All of the reverse mortgages issued in 2009 and 99% of all volume in 2008 were HECMs. The HECM program offers the highest loan amount and the lowest interest rate for most homeowners. The FHA program contains special requirements like HUD counseling and a ceiling property value.

The HECM property value ceiling is currently at $625K. This means that if the home is appraised for more, their loan amount will be based on the $625K value.