Home Equity Conversion Mortgages (HECMs), also known as reverse mortgageloans, were created over 25 years ago by President Ronald Reagan to help Americans age 62 and older convert a portion of their home equity into tax-free money.† HECM reverse mortgages are insured by the Federal Housing Administration (FHA) and allow seniors to age in place and achieve retirement security.
A HECM for Purchase loan combines a reverse mortgage with the equity from
the sale of your previous home - or from other savings and assets - to buy your
next primary home in a single transaction. Regardless of how long you live in
the home or what happens to your home’s value, you only make one down
payment toward the purchase.
The loan amount is based on the age of the youngest borrower, prevailing
interest rates, and the value of the home you wish to purchase.
1. Title and Ownership remain with Homeowner and home can be sold.
2. Home must be occupied, maintained, and taxes and Insurance kept current.
3. Equity proceeds are tax-free and unrestricted as to how used.
4. Homeowner can pay off debt, and make repairs and improvements to home,
allowing to "age in place".
5. Flexible plans include NO COSTS AND NO MONTHLY PAYMENTS!!
6. Some equity required, but home does not need to be paid off!
7. Any remaining equity at time of payoff goes to Heirs.
8. You can receive monthly payments, remodel your home, or give $ to your kids.
9. Reverse Mortgage can be used for an SFR, 2-4 units, or an FHA approved Condo.
10. EASY TO QUALIFY! Be 62+, occupy the home, take a class,
and maintain home!