How Can A Reverse Mortgage Help You?
Found out how much you qualify for...
What is a Reverse Mortgage?
A Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan that enables you to access a portion of your home’s equity to obtain tax-free* funds without having to make monthly mortgage payments.
*Consult your financial advisor or appropriate government agencies for any effect on taxes or government benefits.
Benefits of a Reverse Mortgage
With a HECM Loan…
- Your existing monthly mortgage payment is eliminated.
- You continue to own your home and maintain the title.
- Loan proceeds are tax-free and can be used as you choose.
- Your loan is insured by the Federal Housing Administration (FHA).
Eligibility
To be eligible for a HECM loan:
- The youngest borrower must be at least 62 years of age.
- Non-Borrowing spouse under age 62 is allowed.
- Your home must be your primary residence and have sufficient equity.
- Existing mortgage must be paid off using the HECM loan proceeds.
- You must live in a single family, two-to-four unit owner-occupied home, townhouse, approved condominium or manufactured home.
You must also:
- Complete a HUD approved counseling session.
- Maintain your home according to FHA requirements.
- Continue to pay property taxes and homeowners insurance.