What is the name of a reverse mortgage that is insured by the FHA?

The Home Equity Conversion Mortgage (HECM) is a specific type of reverse mortgage that is insured by the Federal Housing Administration (FHA). This program allows seniors, typically those aged 62 and older, to convert a portion of their home equity into cash while still retaining home ownership. The key feature of HECM is that it provides a financial safety net through the FHA insurance, ensuring that borrowers can remain in their homes as long as they comply with the loan's terms, even if their loan balance exceeds the home's value at the time of repayment.

HECMs are designed to promote financial security for older homeowners by providing them with accessible funds that can be used for various needs, such as healthcare expenses or daily living costs. This makes HECM a unique option when compared to other types of reverse mortgages that may not offer the same protections or insurance backing from the FHA, which can be critical for borrowers looking for stability and security in their financial planning.