What is HECM?
Home Equity Conversion Mortgage (HECM)
Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage that allows homeowner(s), 62* years or older to draw on their home equity in cash, tenure or term payments, a growing line of credit (LOC) or modified tenure or term payments.
* There are some proprietary Reverse Mortgage programs that allow 55 years or older to apply for this loan program.
Are You Eligible For HECM?
1. Age Requirement. The age of the borrower should be at least 62 years. However, non-borrowing spouse can be younger than 62 years old.
2. Ownership Requirement. The borrower must be the homeowner of the property with significant home equity.
3. Residency Requirement. The home subject to the reverse mortgage must be the homeowner’s principal residence.
4. Property Type. Single Family Residence, 2-4 Unit properties, townhomes, condos, PUD’s, and manufactured homes that meet FHA requirements.
How Can Reverse Mortgage Help You?
Cash
Tap into your home equity to get the cash that you need today or to receive monthly payments to boost your retirement.
Line Of Credit
Avail of the advantages of a line of credit (LOC) that grows as you get older with an Adjustable Rate Reverse Mortgage. Your financial security.
Stay in Your House
Enjoy staying in your home that you love where you have created memories over the years with your loved ones. You deserve this!
Payout Options
What Are Your Obligations?
While a reverse mortgage releases you from paying the monthly mortgage payments (P&I) of your loan, you will still have the following obligations:
1. OCCUPY THE HOME. You need to occupy the subject property as your principal residence for the life of the loan.
2. MAINTAIN YOUR PROPERTY. You need to make needed repairs to keep your home in good condition.
3. PAY ALL PROPERTY CHARGES. You are required to pay all property taxes, homeowner insurance, homeowner association dues and any other charges associated with your house.
Failure to keep up with these could cause you to default on the mortgage and may even lead to foreclosure.