HECM for Purchase is an FHA insured, government sponsored Reverse Mortgage program that allows borrowers who are 62 and over to purchase a new primary residence with a reverse mortgage loan all in one single transaction. It’s a great option for older borrowers wishing to move to a home that is better suited to their needs and/or closer to their loved ones.
HECM for Refinance is an FHA insured, government sponsored Reverse Mortgage program that allows borrowers who are 62 and over to convert an existing HECM loan into another HECM in order to take advantage of lower interest rates or borrow more cash with rising home values.
Proprietary Reverse Mortgage
Proprietary Reverse Mortgages are not federally insured, however, they can help 62+ borrowers with property values that exceed $679,650.
Reverse Mortgage costs are comparable to a traditional mortgage. Your interest rate will be based on a fixed or adjustable rate of interest.
Although there are no mortgage payments to make, the homeowner is required to pay any property taxes, property insurance, HOA dues and maintain the home.
Receiving Your Funds
HECM Reverse Mortgages allows the borrower to receive their funds in the form of a lump sum, line of credit, monthly installments or a combination of any of these three.
62 Years Old and Over
Minimal income or credit qualifying restrictions (only that residual income requirement is met)
The home must be a borrower’s primary residence
The property can be a single family home or a two-to-four unit property
Town homes, manufactured homes and some condominium units, are eligible
The home must meet HUD minimum property standards as determined by an FHA appraisal. In some cases, home repairs can be made during the process of the loan or after the closing of the loan