HECM, which is short for “home equity conversion mortgage” is insured the FHA and HUD. All of the reverse mortgages issued last year were HECMs and nearly all of the reverse mortgages the year before were HECMs. The HECM program is the leading program because it presents the highest loan amount and the lowest interest rates for most applicants. Another draw about the HECM is that it makes counseling madatory and has a property value ceiling.

Currently, the HECM property value ceiling is at $625,000. For example, if your home is appraised for more than $1,000,000 your loan amount will be based on the $625,000 value instead of the higher $1,000,000 amount.