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 away, 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