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Reverse Mortgage Types

Most people get reverse mortgages through a mortgage lender. Some credit unions and banks, with state and local housing agencies, may offer these loans as well.

Generally, there are three types of reverse mortgages:

  • Home Equity Conversion Mortgage (HECM)
    The Department of Housing and Urban Development (HUD) offers HECMs and the Federal Housing Administration (FHA) insures them. HECMs are the most popular reverse mortgages, representing about 90 percent of the market. The federal government regulates most upfront costs for HECM loans. There are limits on the total fees and interest rates that you must pay
  • Fannie Mae Home Keeper Loan
    The loan limits for Fannie Mae Home Keeper Loan is higher than for HECMs. Therefore, you may receive more cash from these loans than with a HECM
  • Financial Freedom Cash Account Loans
    Financial Freedom Cash Account Loans are designed for seniors who own expensive homes

Good To Know

For more information on Reverse Mortgages, please see the Consumer Financial Protection Bureau’s Reverse Mortgage Guide