FHA-insured U.S. reverse mortgage program that lets eligible older homeowners draw on home equity under program-specific limits and protections.
A Home Equity Conversion Mortgage (HECM) is the main FHA-insured reverse-mortgage program in the United States. It lets eligible older homeowners convert part of home equity into loan proceeds while they continue occupying the property under program rules.
HECM matters because it is the reverse-mortgage program most finance readers actually encounter in U.S. housing-finance discussions. It combines the economic logic of a reverse mortgage with FHA insurance, standardized borrower protections, and program-specific limits.
A HECM is still a reverse mortgage, so the balance generally rises over time as money is drawn and charges accrue. What makes it distinct is that it operates inside an FHA-backed framework rather than as a purely proprietary lender product.
| Product | Structure | Typical borrower context | Main distinction |
| — | — | — | — |
| Reverse mortgage | Broad product family | Older homeowner drawing on equity | Umbrella concept |
| HECM | FHA-insured reverse mortgage | Borrower using the main U.S. program | Program rules, insurance, and standardized protections |
| Proprietary reverse mortgage | Private reverse mortgage | Higher-value or specialized cases | Outside the main FHA-backed program |
In practice, borrowers may receive proceeds as a line of credit, scheduled payments, a lump sum, or a combination, depending on program rules and loan design.