Types of Reverse Mortgages


There are 3 basic reverse mortgage loans:
  1. Federally-Insured Reverse Mortgages
    More commonly known as Home Equity Conversion Mortgages (HECM), the HECMs are insured by the federal government. The U.S. Department of Housing and Urban Development (HUD) helps make these reverse mortgages, widely available. There are no credit or income requirements. There are property value limits on these loans.
  2. Reverse Mortgages - Government Sponsored
    Known as a Home Keeper, Fannie Mae is responsible for this conventional market alternative to the Home Equity Conversion Mortgage that is insured by HUD. The Home Keeper mortgage loans and the HECMs are very similiar except that the Home Keeper allows borrowers who own condos or have a higher property value that exceeds HECM's guidelines to qualify for a reverse mortgage.
  3. Proprietary Reverse Mortgages
    All other types of reverse mortgages are private loans with different features from corporations and banks. For example, Wells Fargo and Financial Freedom each have their own types of reverse mortgages.