Your Biggest Investment is Your Biggest Reward
WHAT IS A HOME EQUITY CONVERSION MORTGAGE?
A Home Equity Conversion Mortgage (HECM) is the FHA insured Reverse Mortgage Loan Program for qualified homeowners ages 62 and older.
A Reverse Mortgage lets you stay in control.
The title for the home remains in your name, not the lender's.
As long as you maintain your home and pay your real estate taxes and homeowners’ insurance, the loan does not have to be repaid until the last surviving homeowner passes away, permanently moves out, or sells the home.
Flexible repayment feature: No monthly principal and interest payments are required, and there's no pre-defined loan maturity date. You can choose to pay down the loan at any time or defer repayment. This gives you more freedom in managing monthly expenses.
USE A REVERSE MORTGAGE TO ACCESS YOUR CURRENT HOME’S EQUITY.
You may be more ready to fund your ideal retirement than you realize. A Reverse Mortgage can give you more power to live better.
Turn part of the equity you've built in your home into funds you can use today, or a line of credit that will be there when you need it.
Eliminate your existing mortgage payment, postpone tapping into your savings, delay taking your social security payments to maximize your total benefits, or create a rainy-day fund.
You can choose the type of Reverse Mortgage loan that best fits your needs.
Receive funds as a lump sum, line of credit, monthly advances, or any combination of these.
Supplement your retirement income, establish an "emergency fund", or cover healthcare costs.
USE A REVERSE MORTGAGE TO PURCHASE A HOME.
A Home Equity Conversion Mortgage can be used to help senior homebuyers complete the purchase of a primary residence.
The HECM for Purchase offers convenience and flexibility to purchase a new home while eliminating required monthly mortgage payments. Borrower(s) make a down payment and the Reverse for Purchase loan covers the rest. (Down payment can come from proceeds from an existing home sale or cash on hand, etc., gift funds can also be used). This is exciting news for senior buyers who want to downsize, upsize, move closer to family, move to a senior community or for those who simply find their current home no longer meets their needs.
Eliminate Monthly Mortgage Payments - Free up cash to cover other important expenses, such as health care, paying bills or simply hobbies.
Improve Purchasing Power - Use the funds from a reverse mortgage to purchase “more home” and avoid asset liquidation.
Right-Size to the Right Home - Move closer to family and friends or match new lifestyle needs.
Make optional payments - Decrease the principal and interest balance while creating a built-in growing line of credit designed to prevent the need for a future cash out refinance.
HECM LOANS:
SPECIFICS:
• Available to seniors who are age 62 and older
• No monthly mortgage payments required*
• Minimal income and no credit score requirements
• Government insured, FHA loan
• Homeowner remains solely on title
• Eligible properties: existing single-family homes and FHA approved condominiums
• Fixed rate and adjustable-rate options are available
CANDIDATES
• Are at least 62 years of age
• Home will be their primary residence
• Are looking for a way to hedge assets, manage expenses or fund retirement goals
ADVANTAGES
• Borrowers retain ownership and continue to live in the home, provided all program requirements are met
*A borrower must maintain the terms of the loan; the property remains their primary residence, they pay their property taxes, homeowner’s insurance, maintenance costs and otherwise comply with the loan terms.
