Types of Reverse Mortgages

The HECM Program and Proprietary Mortgage Options

There are two types of reverse mortgages:

1. The Home Equity Conversion Mortgage (HECM)

The HECM is a HUD/FHA federally insured program, which was instituted by the Reagan administration in 1988. Today, HECMs are the dominant program throughout the country—constituting over 95 percent of all outstanding reverse mortgages. The HECM program is available nationwide, and is the only approved reverse mortgage program in the state of Massachusetts (as of January, 2017). 

2. Proprietary (Jumbo) Reverse Mortgages

These are non-insured reverse mortgage programs offered by private lenders. Proprietary programs generally provide funding amounts greater than HECM limits and at less favorable terms. Their availability is limited to the states in which each lender is licensed and approved to offer the program.

The MA Division of Banks has not approved any proprietary mortgages in MA.  Call us for updates on proprietary mortgage approvals as this may change.