Reverse Mortgage (HECM LOAN)

Why go for a FHA Reverse Mortgage? (HECM Loan)

  • Get Tax-free cash advances for your home.
  • No monthly paybacks. In fact, the lender pays you!!
  • Non-Recourse loan which means the amount you owe will always be less than or equal to the value of your home.
  • Does not affect your Social Security and Medicare Benefits.
  • Pay back only when you sell your home.
  • Federally insured Home Loan (HECM) – Government Safe.
  • Unique credit line created by the FHA – Federal Housing Administration.
  • No hidden information. In fact, you can apply for a HECM Reverse Mortgage loan only after you are counseled by a HUD certified, third-party counselor.

The FHA Reverse Mortgage is also known as a HECM. HECM stands for Home Equity Conversion Mortgage. FHA Reverse Mortgage (HECM) is a federally insured home loan created by the FHA as a unique credit line that allows for cash advances based on your home and its equity. The FHA Reverse Mortgage (HECM) has a lot of savers. It is a safe and effective financial tool and the money you receive is tax free. There is one type of FHA Reverse Mortgage loan where the lender can pay you monthly, another that pays you a lump sum and even a line of credit to use as an emergency fund.

Fixed-Rate Jumbo Reverse Mortgages are available for Higher-Valued Homes!

Eligibility to apply for a FHA Reverse Mortgage (HECM Loan)

  • At least 62 years of age
  • A Homeowner
  • Occupy your home as your primary residence
  • Credit and income are not considered in qualifying
  • Equity or Down Payment depending on if this is a FHA Reverse Mortgage Refinance or a FHA Reverse Mortgage Purchase

Methods of Payment to you on a Reverse Mortgage (HECM Loan)

Our Reverse Mortgage Specialists are here to help explain the differences on how to receive the payments from a HECM loan.We can customize a payment plan for you!

There are 3 methods of payment or a combination of methods that suits your needs

  • Lump Sum
  • Monthly Payment
  • Line of Credit

How and when do you payback your Reverse Mortgage (HECM Loan)

The HECM loan needs not be paid back until the last surviving homeowner permanently moves out of the home or passes away. When the homeowner passes away, the heirs have up to 12 months to refinance the balance or sell the home. Again the balance you owe can never be greater than the value of your home. So you won’t be leaving behind any debts.

How are you safeguarded in a Reverse Mortgage (HECM Loan)

The Department of Housing and Urban Development requires that borrowers receive counseling from a HUD approved third-party counseling agency before applying for a HECM loan. Your counselor will make sure you are aware of all the information before you can proceed.