Reviewed by Jeff Shin, NMLS #1041652. Updated .
Also called: Home Equity Conversion Mortgage, HECM, FHA reverse mortgage.
Who qualifies
Per HUD, the borrower must be 62 or older, own the home, live in it as a primary residence, and complete a counseling session with a HUD-approved HECM counselor before applying. Any existing mortgage has to be paid off with the HECM proceeds. HUD calls the HECM the only reverse mortgage insured by the federal government, and it is made through FHA-approved lenders.
What you still pay
The CFPB lists the ongoing duties: pay property taxes and homeowners insurance, live in the home as your principal residence, and keep it in good repair. Falling behind on any of these can make the loan come due. Because interest and fees are added each month, the balance grows over time instead of shrinking. See tax and insurance checks on a reverse mortgage.
How much you can get
HUD says the amount depends on the age of the youngest borrower or eligible non-borrowing spouse, the current interest rate, and the lesser of the appraised value, the sales price, or the HECM FHA mortgage limit. A HECM for Purchase lets you buy a new primary home and take the reverse mortgage in one transaction, with cash covering the difference.
Related terms
Related on BankPricer
Sources
Definitions on this page are summarized from the agencies that set the rules. Lenders can add stricter requirements. Checked October 7, 2026.
Not sure which of these applies to you?
That is usually the actual question. Send the situation rather than the product name — purchase or refinance, primary or investment, price range, and timeline — and you get the structures that fit, with what each one costs.