—also called Home Equity Conversion Mortgages (HECM)
A Reverse Mortgage (HECM) may be a great purchase or refinance solution for you if:
- You're 62 or older; and
- You want to purchase a new home with flexible monthly payments (including no payments);1 or
- You own and have sufficient equity in your home and you want to turn part of the equity you've built up in your house into funds you can use today, or a line of credit that will be there when you need it; and you live in the home as your primary residence.
Reverse Mortgage (HECM) benefits and features:
- A Reverse Mortgage (HECM) is insured by the Federal Housing Administration (FHA)2 and offers all the benefits of a traditional line of credit that you can get from a bank but with additional benefits—including a flexible repayment feature.
- You can take your funds as a lump sum, line of credit, monthly advances, or any combination of these.3
- You’re not responsible to pay the difference if the loan balance ever exceeds the value of your home when the loan becomes due—known as the non-recourse feature.
- As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, maintenance, and any homeowners association (HOA) fees.
- Other conditions and requirements apply.
1 As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, maintenance, and any homeowners association (HOA) fees.
2 This material has not been reviewed, approved or issued by HUD, FHA, or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.
3 Borrowers who elect a fixed-rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable-rate mortgages.
CALL YOUR ACADEMY LOAN OFFICER today for more information about a Reverse Mortgage (HECM)