What is a HECM: The sound you make when you hiccup, that program where the bank takes my home, I don’t give a $%&#. These are all actually answers I received at recent reverse mortgage seminar I conducted in Philadelphia.Although reverse mortgages are more popular than ever these days, there are still a lot of myths and misconceptions floating around out there.
The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both.
You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
You can find detailed information about the HECM program on HUD’s website.
Hope this helps folks understand what the HECM it is…