Reverse Mortgages

Also known as Home Equity Conversion Mortgages

 

About HECM (Reverse Mortgage)

At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to you and you may need to sell or transfer the property to repay the proceeds of the reverse mortgage from the proceeds of the sale or transfer or you must otherwise repay the reverse mortgage with interest from your other assets.

We may charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which will be added to the balance of the reverse mortgage loan.

The balance of the reverse mortgage loan grows over time and interest is charged on the outstanding loan balance.

You retain title to the property that is the subject of the reverse mortgage until you sell or transfer the property and therefore you are responsible for paying property taxes, insurance, maintenance, and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may be subject to a tax lien or other encumbrance or to possible foreclosure; and

Interest on a reverse mortgage is not deductible from the person’s income tax return until the person repays all or part of the reverse mortgage loan.

Did you know there are different types of Reverse Mortgages?

Reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs), have two different types: essentially a purchase and a refinance.

If you are considering a HECM loan, there are a number of things to consider, including eligibility. 

We would love to learn more about your unique financial situation and help you discern if one of these products is right for you.

HOME EQUITY CONVERSION MORTGAGES

There are many factors to consider before deciding whether a HECM is right for you. We are here to help you through this process and would be happy to meet and discuss program eligibility requirements, financial implications, and more to see if this type of loan product is right for you.

For this type of loan, there are a few requirements that both the borrower and the property must meet:

Borrower Eligibility:

  • Be 62 years of age or older
  • Occupy the property as your principal residence
  • Be current with payments, and not own any federal debt
  • Have financial resources to make timely payments of ongoing property charges such as property taxes, insurance, Homeowner Association fees, etc.
  • Participate in an educational seminar about HECM mortgages

Property Eligibility:

  • The property must be a single-family home or a 2-4 unit home with at least one unit occupied by the borrower
  • HUD-approved condominium
  • FHA-approved manufactured home
HECM Purchase

Eliminate your monthly mortgage payment and purchase a new home!

If you’re at least 62 years or older, the Home Equity Conversion Mortgage (HECM) for Purchase Loan can help you buy your next home without a monthly mortgage payment! The HECM for Purchase is a Federal Housing Administration (FHA) insured mortgage that allows you to utilize the equity from the sale of your previous home to buy your next primary residence in one unique transaction.

Many home buyers use the HECM for Purchase Loan to:

  • Right-size to a smaller, lower maintenance home
  • Buy a home closer to family or friends
  • Lower their cost of living during retirement
  • Enjoy carefree living in a senior housing community

Borrower Eligibility:

  • Borrowers must be 62 years or older
  • The purchased home must be a primary residence
  • The home must be occupied within 60 days of loan closing
  • Property must be a single-family home, 2-to-4 owner-occupied unit dwelling, FHA-approved condo, or manufactured home that meets FHA requirements
  • The difference between the purchase price of the new home and the HECM loan proceeds must be paid in cash from qualifying sources such as the sale of the prior residence, the home buyer’s other assets, or savings
  • HUD-approved borrower education must be completed

Interested in a Reverse Mortgage? We'd love to meet. Fill out the below form and we will have a local representative reach out to you.