Reverse Home Equity Conversion Mortgages (HECMs) are specialized loans tailored to older homeowners, typically aged 62 and above, allowing them to convert a portion of their home equity into cash. Administered by the Federal Housing Administration (FHA), these loans enable seniors to access funds without needing to sell their homes. Unlike traditional mortgages, HECMs don’t require monthly payments; instead, the loan balance accrues over time and is repaid when the homeowner moves out, sells the property, or passes away. HECMs offer various disbursement options, including lump sums, monthly payments, or lines of credit, providing flexibility in how homeowners access their equity. This financial tool is valuable for retirees seeking to supplement income, cover healthcare expenses, or improve their overall financial security in retirement by tapping into their home’s value. However, it’s crucial for borrowers to understand the associated costs and obligations, including interest accrual and maintenance of property tax and insurance payments.