Reverse Mortgage · HECM Loan

HECM Loan

The Home Equity Conversion Mortgage (HECM) is the most widely used reverse mortgage loan in the United States — federally insured by FHA and overseen by HUD.

Try the free HECM calculator Call 888-501-8539

Written by Mike Elachkar, President, EnnkarReviewed July 2026

What Is a HECM Loan?

A HECM loan (pronounced “heck-um”) is a reverse mortgage insured by the Federal Housing Administration (FHA) under the authority of the U.S. Department of Housing and Urban Development (HUD). It allows homeowners age 62 or older to access a portion of their home equity without selling their home or making monthly mortgage payments.

The loan does not require repayment as long as at least one borrower lives in the home as their primary residence and meets loan obligations — including paying property taxes, homeowner’s insurance, and maintaining the property. For a broader plain-English introduction, see our What Is a HECM? guide.

How You Can Receive the Funds

Lump Sum

Receive the full available amount at closing. Fixed interest rate applies.

Line of Credit

Draw funds as needed. The unused portion grows over time, providing more flexibility.

Monthly Payments

Receive a fixed monthly disbursement — either for a set term or for as long as you live in the home.

Combination

Mix a partial lump sum with a line of credit or monthly payments based on your needs.

Occupancy Requirements

A HECM must be secured by your primary residence— the home where you live most of the year. HUD requires you to certify occupancy annually, and your servicer may follow up if it cannot confirm you’re still living in the home.

Temporary absences — for a hospital stay, rehabilitation, or an extended visit with family, for example — are generally accommodated for a limited period under FHA rules without affecting your loan. If you expect to be away from the home for an extended stretch, contact your servicer proactively; unresolved, extended absences can eventually trigger due-and-payable status, the same as selling or permanently moving out would.

FHA Mortgage Insurance & Non-Recourse Protection

Every HECM carries FHA mortgage insurance (MIP) — an initial premium paid at closing and an ongoing annual premiumcharged against the outstanding balance. MIP funds the FHA insurance program that backs every HECM, and it’s what makes the program’s signature consumer protection possible.

That protection is called non-recourse: if the loan balance ever grows larger than the home is worth at repayment — which can happen after many years of accrued interest and insurance charges — neither you nor your heirs are personally responsible for the shortfall. FHA insurance covers the difference owed to the lender. Repayment always comes from the home itself (a sale or its appraised value), never from other income or assets.

See our HECM costs and fees guide for how MIP is calculated and financed, and our myths guide for how non-recourse protection plays out for heirs.

General HECM Requirements

At least one borrower must be age 62 or older
The home must be your primary residence
Single-family homes, FHA-approved condominiums, and 2–4 unit properties you occupy are eligible
You must have sufficient equity — typically the more equity, the more you may access
You must be financially able to pay property taxes, homeowner's insurance, and upkeep
Completion of a HUD-approved counseling session is required before the loan closes

If you or your spouse are between the ages of 55 and 61, ask about proprietary (jumbo) reverse mortgage programs, which may have lower age requirements than the federally insured HECM.

Loan amounts depend on age, home value, appraised value, current interest rates, and program guidelines. A licensed Ennkar loan officer will review your specific situation at no cost. This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access. Federal law requires HUD-approved counseling before a HECM loan closes. Find a HUD-approved counselor.

HECM Lending Limits

HECM loans are subject to an FHA lending limit that is updated annually. Homes valued above this limit may still use a HECM, but the maximum loan amount is based on the limit — not the full home value.

For higher-value homes, Ennkar also offers a Jumbo Reverse Mortgage that may allow access to more equity.

Frequently Asked Questions

What is a HECM loan?

A HECM loan (Home Equity Conversion Mortgage) is a reverse mortgage insured by the Federal Housing Administration (FHA) and overseen by HUD. It lets qualifying homeowners age 62 or older convert part of their home equity into cash — as a lump sum, line of credit, monthly payments, or a combination — without a required monthly mortgage payment, as long as they meet loan obligations such as taxes, insurance, and occupancy.

How is HECM occupancy verified after closing?

Servicers require an annual occupancy certification confirming the home remains your primary residence. Temporary absences for medical treatment or other documented reasons are generally permitted up to a set period under FHA rules — extended absences beyond that period can affect the loan's status, so notify your servicer if you'll be away for an extended time.

What does FHA mortgage insurance (MIP) pay for on a HECM?

MIP funds the FHA insurance fund backing the HECM program. It's what makes the non-recourse guarantee possible: if a loan balance ever exceeds the home's value at repayment, FHA insurance — not you or your heirs — covers the difference to the lender. You pay an initial MIP at closing and an ongoing annual MIP as the loan balance accrues.

What exactly does 'non-recourse' mean on a HECM?

Non-recourse means neither you nor your heirs are personally liable for loan balances that exceed the home's value when the loan becomes due. Repayment comes from selling the home (or the home's appraised value), never from other assets or income, regardless of how large the loan balance has grown.

Can I change how I receive HECM proceeds after closing?

Some flexibility exists depending on your loan's structure — for example, adjustable-rate HECMs with a line of credit may allow you to request additional draws or set up new monthly payments later, subject to your available Principal Limit. Fixed-rate HECMs disburse a single lump sum at closing and don't offer this flexibility. Ask your servicer what options apply to your specific loan.

These answers are for educational purposes only and do not constitute financial, legal, or tax advice. This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access.

Sources

HUD Handbook 4000.1 — HECM Occupancy, MIP, and Servicing Requirements — official occupancy certification, temporary absence, and mortgage insurance rules
HUD — Home Equity Conversion Mortgages (HECM) for Seniors — official program overview and FHA insurance backing
CFPB — What Is a Reverse Mortgage? — official explanation of non-recourse protection and loan balance growth

Continue Learning

What Is a HECM?HECM Eligibility HECM Costs & Fees Non-Borrowing Spouse HUD Counseling Browse FAQs

Curious how much you may access?

Use our free reverse mortgage calculator for an educational estimate in about a minute — no name, email, or phone required to see preliminary numbers. Ages 55+ (jumbo) and 62+ (HECM).

Try the reverse mortgage calculator Call 888-501-8539

This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access.