Reverse Mortgage Loans
Home Equity Conversion Mortgage (HECM)
If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA's Home Equity Conversion Mortgage (HECM) program. The HECM provides a way to improve quality of life by eliminating mortgage payments and/or providing additional monthly cash to the homeowner. If you simply would like to have more control over your financial affairs and the ability to stay in your home longer, a reverse Mortgage might be just the answer. HECM loans can be used for your current home, or the purchase of a new home.
- Equity Required: Typically a minimum of 60%.
- Credit Scores: Acceptable credit history is required to avoid an escrow reserve set-aside
- Loan Limits: Up to $625,500
- Occupancy: Owner occupied only
Reverse Mortgage Purchase
Utilizing a reverse mortgage you can purchase a new home with no required monthly mortgage payment. Here are some things to consider about this loan:
- Buy a new principal residence and obtain a reverse mortgage in a single transaction. Streamline home buying transaction and cut cost.
- Down Payment is determined by the youngest borrower. The older that person is, the less the borrower potentially needs to put down.
- Your are not required to repay the loan until it becomes due and payable (Ex: if you move, sell the property, or pass away).
- No more mortgage payments! Just pay property taxes, insurance, fees, and home maintenance costs.
- Eligible for Single Family Homes, Town Homes, Condominiums, FHA-Approved mobile or Manufactured Homes.