What does HECM stand for, and who is it primarily aimed at?

HECM stands for Home Equity Conversion Mortgage, which is a specific type of reverse mortgage program designed primarily for seniors, typically those aged 62 and older. This program enables eligible homeowners to convert a portion of their home equity into cash while allowing them to continue living in their homes. It is tailored to address the financial needs of older adults, providing them with additional income during retirement years without requiring monthly mortgage payments.

The purpose of HECMs is to enhance the financial stability of seniors by granting them access to the equity built up in their home, which can be used for various purposes such as healthcare expenses, home modifications, or supplementing retirement income. This focus on seniors distinguishes it from other options that target different demographics or purposes related to home financing.