A Home Equity Conversion Mortgage (HECM), or a reverse mortgage as it is more commonly known, enables homeowners to access a portion of their home’s equity without making monthly mortgage payments. Those who are 62 or older and have enough equity in their home may be eligible to get a cash payout from their equity.
A HECM/reverse mortgage is an excellent retirement solution for homeowners looking to access the money they have accumulated in their home as they continue to live there.
Types of HECM/reverse mortgages we offer:
- A HECM with a lump sum payout.
- A HECM with payment over time.
- A Reverse Second Mortgage first mortgage stays in place, and the second is completed with a lump sum payout.
For many homeowners who are approaching retirement or have already retired, A HECM/reverse mortgage is a great way to achieve their ideal retirement lifestyle. Even with careful planning, saving, and investing, many people do not have enough funds to live comfortably.
Here are some benefits of a HECM/reverse mortgage:
- Eliminates monthly mortgage payments, and repayment is deferred until you leave the house.
- Allows you to remain in your home as you age.
- Loan proceeds are tax-free and can be used as you wish.*
- Any remaining equity can be passed down to your heirs after paying off the HECM loan.
- Funds can be used to pay medical bills, other loans, and unsecured debt.
- Improve our monthly cash flow.
- Build a safety net.
- Pay for improvement of renovations.
- Borrowers must meet the age requirement of 62 years.
- Borrowers must live in the home as their primary residence and have sufficient equity.
- Borrowers must be able to pay off their existing mortgage using the HECM loan proceeds.
- Borrowers must be financially able to pay their property taxes and homeowners insurance.
- Borrowers must have enough income to keep up the general maintenance of the property.
- Borrowers must meet financial eligibility criteria as established by HUD and meet with a reverse mortgage counselor.
HECM/reverse mortgages have evolved and are now considered a safe, secure method of using home equity as a financial tool for retirement. Contact our HECM/reverse mortgage specialists for a consultation today.
*For tax advice, please contact a tax professional.