HECM
Business & Finance abbreviation · Real Estate & Mortgage
| Stands for | Home Equity Conversion Mortgage |
|---|---|
| Categories | Business & Finance |
HECM stands for Home Equity Conversion Mortgage, a real estate & mortgage abbreviation.
FHA-insured reverse mortgage for homeowners aged 62 or older that converts home equity into cash, a line of credit or monthly payments, with no required monthly mortgage payments while the borrower lives in the home.
Example: Mom used a HECM to pay off her mortgage and stay in the house.
Usage notes
The loan is repaid when the last borrower dies, sells or moves out, and it is non-recourse, so heirs never owe more than the home's value. Borrowers must complete HUD-approved counseling and keep paying property taxes, insurance and upkeep. Pronounced "HECK-um."
Related abbreviations
More real estate & mortgage abbreviations
- GFE – Good faith estimate
- GLA – Gross leasable area
- GNMA – Government National Mortgage Association
- GRI – Graduate, REALTOR Institute
- GRM – Gross rent multiplier
- GSE – Government-sponsored enterprise
- HEL – Home equity loan
- HELOC – Home equity line of credit
- HOA – Homeowners association
- HUD-1 – HUD-1 Settlement Statement
- HWF – Hardwood floors
- IDX – Internet Data Exchange