Reverse Mortgages Home What are Reverse Mortgages? Who is eligible for them? Types of Reverse Mortgages Why choose Reverse Mortgages Paying back Reverse Mortgages Questions to ask lenders Their disadvantages Reverse Mortgage requirements Origination and MIP Fees Dealing with closing costs The process of getting one What is the HECM? Appraisal Fees Servicing Set-Aside What is the HECM?   Home Equity Conversion Mortgage (HECM) is the oldest and most popular reverse mortgage product, providing 90% of all reverse mortgages in the United States. The HECM has been available for homeowners over the age of 62 since 1989. These loans are insured by the federal government through the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development.   More Options HECM loans are known for providing the largest loan advances of any other reverse mortgage, although this distinction is quickly going to other providers. They often provide more cash and more options for your loan than other lenders.   Although the money you receive from a HECM can be used for any purpose you choose, they are not cheap; however, they can be much less expensive than other options. In addition, they are guaranteed by the federal government even if your lender goes out of business due to your payment of the mortgage insurance premium (MIP).   Why HECM? Generally, the only reverse mortgages that are less expensive than HECMs are those offered by state or local governments. However, loans from these entities are usually required to serve a single purpose, such as repairing your home or paying your property taxes. Additionally, they are usually only available to those homeowners with low or moderate incomes. Thus, for many people the HECM may be your best bet for receiving a reverse mortgage loan.