Reverse Mortgage

A Reverse Mortgage is also known as a HECM ( Home Equity Conversion Mortgage)

What is a Reverse Mortgage?

A loan allowing those 62+ years or older to age in place by accessing a portion of their equity

• Borrower receives proceeds in lump sum, line of credit, monthly payments or combination
• FHA insured, non-recourse loan
• Repayment is deferred- No monthly mortgage payments
• Available as purchase
• Amount available is based on age, interest rate, home value (up to $687,650) and a factor set by the FHA.

Benefits:

• Increased Cash Flow
• No repayment of loan until last borrower moves out, sells or passes way, as guaranteed by the Federal Housing Administration (FHA)
• No penalty for early payment
• Americans age 62+
• 50% or greater equity in the home
• Resides in subject property

Who is a Reverse Mortgage For?

• Americans age 62+
• 50% or greater equity in the home
• Resides in subject property

Who is eligible for a reverse mortgage?

• All borrowers must be at least 62 years of age
• Must have sufficient equity
• Must pass financial assessment
• Must be primary residence- no second homes, vacation homes, etc.
• All borrowers must attend reverse mortgage counseling