DESCRIPTION
The HECM Loan Blog is dedicated to providing accurate up
to date posts regarding HECM loans and related topics.
ARTICLE
What is HECM?
HECM stands for Home Equity Conversion Mortgage.
HECM Loans allow you to borrow equity from your home, without having
to pay the mortgage, or even pay back the loan in your lifetime. You still retain
ownership of your home with the HECM loan.
HECM Loan Benefits
*The money you receive is tax free income
*No payments as long as you live in the home
*No credit or income requirements
*Reverse mortgages are supported by AARP
*Reverse mortgages are insured by the FHA
HECM Loans are sponsored by and insured by insured by the US
Government. This feature makes them safe, and sets them apart from
similar loan products.
HECM Loan Qualifications
*Borrowers must be Age 62 years or older
*Own their home and have enough equity in to qualify
*Occupy the home as primary residence
*The home must be in generally good condition
*Must meet with a certified HUD/FHA counselor
Rates were recently raised so more equity can be drawn from the homes
value, allowing for loans. This becomes especially important in high
priced areas. Many seniors own a valuable home, with tremendous
equity, yet live on a fixed income.
HECM mortgage loans allow them to tap into that equity and live more
comfortably.
HECM Loan Payments
*Lump sum disbursement
*Monthly payments
*Line of credit
*A combination of the Above
Keywords: HECM Loans, Home Equity Conversion Mortgage
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