Home Equity Conversion Mortgage (HECM)
The HECM reverse mortgage is insured by the federal government through the Dept. of Housing and Urban Development (HUD) and is considered an FHA loan. It is the safest loan you can get because it is insured by FHA. It is also currently the most popular reverse mortgage on the market. There are no payments required throughout the lives of the borrowers, as long as they live in the home. You must pay property taxes and homeowner’s insurance. The FHA mortgage insurance provides a guarantee that the homeowner will never owe more than the value of the home at the time it becomes due as long as the loan is repaid by the sale of the home. The lender will accept market value for repayment. If the borrower’s heirs prefer to keep the home they can purchase the home at 95% of market value with a post-death transfer. Be sure to communicate with your loan servicer at the time the mortgage becomes due.
Reverse Mortgages are changing rapidly. Angella Conrard and her team pride themselves in staying current with the latest products and trends to help serve and counsel their senior clients. We shop the lenders for you so you can be sure you get the best plan available.