HECM – Home Equity Conversion Mortgage
Home Equity Conversion Mortgage (HECM) is an FHA insured, government sponsored Reverse Mortgage program. Most reverse mortgages today are HECMs, allowing borrowers 62 and over to take advantage of the equity built in their homes.
The equity may be used for supplemental retirement income, making much needed home repairs, purchasing a new home closer to loved ones, or taking a long awaited vacation to an exotic destination.
HECM for Purchase
HECM for Purchase is an FHA insured, government sponsored Reverse Mortgage program that allows borrowers who are 62 and over to purchase a new primary residence with a reverse mortgage loan all in one single transaction. It’s a great option for older borrowers wishing to move to a home that is better suited to their needs and/or closer to their loved ones.
HECM for Refinance
HECM for Refinance is an FHA insured, government sponsored Reverse Mortgage program that allows borrowers who are 62 and over to convert an existing HECM loan into another HECM to take advantage of lower interest rates or borrow more cash with rising home values.
Proprietary Reverse Mortgage
Proprietary Reverse Mortgages are not federally insured, however, they can help 62+ borrowers with property values that exceed $625,000.
Interest Rates And Mortgage Insurance
Adjustable rates can cause the loan balance to grow at a faster or slower rate.
Government Mortgage Insurance
This is put in place by the FHA to protect you and your heirs by insuring that the amount required for repayment of the loan will never exceed the value of your home when payment is due. If, at that time, the proceeds from the sale of your home are insufficient to pay off the loan balance, the FHA will cover any shortfall. An initial premium will be due upon closing your loan. This payment can be financed as part of your HECM loan proceeds.
Want More Information:
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