It seems like just about everything that has to do with old people and or the federal government is given a set of initials that eventually becomes a word.
HECM stands for . . get this LOL “Home Equity Conversion Mortgage Program”. This isn’t a home equity line of credit or loan. The HECM is what used to be called a reverse mortgage.
Yes, a reverse mortgage is just what it sounds like. The homeowner gets a money each month instead of making a payment.
Homeowners can also use the program to open a line of credit that does not have to be repaid.
The amount that can be borrowed depends upon the amount of equity in the home and the age of the youngest borrower.
The money can be used for anything and it can be paid back in full. It might be a good way to finance roof or some other home improvement.
HECM has some strict requirements like you have to be at least 62 and own your home free and clear or have a lot of equity.
There are more details, in-fact a lot more details and they can be found on the HUD website.