The Federal Housing Administration (FHA) mortgage insurance allows borrowers, who are at least 62 years of age, to convert the equity in their homes into a monthly stream of income or a line of credit. Reverse mortgages get their name because borrowers don’t make payments to lenders
Borrowers may choose from among five payment options: (1) tenure, by which the borrower receives monthly payments from the lender for as long as the borrower lives and continues to occupy the home as a principal residence; (2) term, by which the borrower receives monthly payments for a fixed period selected by the borrower; (3) line of credit, by which the borrower can make withdrawals up to a maximum amount, at times and in amounts of the borrower’s choosing; (4) modified tenure, by which the tenure option is combined with a line of credit; and (5) modified term, by which the term option is combined with a line of credit.
For the right person, the HECM Home Equity Conversion Mortgage also known as reverse mortgage is an outstanding product.
It’s a special home loan designed to help homeowners trade some of their home equity for cash. For many people home equity lines of credit, and cash-out refinancing may be a better choices. Contact us to evaluate your situation.
The maximum loan amount depends on the borrower’s age, the amount of equity in the home and current interest rates. The money can be used for any purpose, such as paying down debt,, medical costs, home repairs or just improving your lifestyle. The HECM is aimed at people 62 and older who own their homes and want to maintain certain lifestyle. HECM reverse mortgages can help homeowners who otherwise may not qualify for other financing because of credit problems or insufficient income. One Borrower must be at least 62 years old. but the lender must evaluate your ability to pay your property taxes, insurance and property maintenance.
Loan is repaid when the homeowner sells the property or leaves it to heirs.
Check Hud.gov to learn more or contact us to educate you about HECM Mortgage.