Most reverse mortgages fall under the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage program or HECM. This HUD-approved and FHA insured loan program is non-recourse, which means that when repayment is due, the balance will never be higher than the value of the property, even if the property’s value has gone down. Any equity that remains can be given to heirs. If the heirs would like to purchase the property, they would be able to purchase it for 95% of the Fair Market Value.