Home Equity Conversion Mortgage (HECM)

Age Requirement: 62+

Purpose: access your liquidity by converting a portion of your home equity into cash without the monthly mortgage payments and keeping title to your home.

Benefits:

-No monthly mortgage payment: loan due after last borrower leaves home as primary residence.

-Non-recourse loan-safety net never owing more than the home is worth. Only the home is used to pay the loan.

-FHA Insured-guarantees lender is insured taking pressure off homeowner and regulates to protect the borrower.

-“Secured” Line of credit in variable rate HECM, that grows over the course of the loan at the same interest rate as your loan.

-Lump sum, monthly payments, or line of credit; FHA-insured; non-recourse loan.

-You keep title to your home.

-While there are no pre-payment penalties, the reverse mortgage comes due when the last remaining borrower or eligible non-borrowing spouse no longer lives in the home as their primary residence.