Reverse Mortgage loans give seniors the ability to live in their home, with no monthly mortgage payments¹, by converting home equity into cash while still maintaining ownership!
Home Equity Conversion Mortgages (HECMs), also known as reverse mortgage loans, were created over 25 years ago to help homeowners age 62 and older convert a portion of home equity into tax-free money.³
How does it work?
A reverse mortgage loan allows you to turn some of the equity in your home into cash to improve your financial situation. With a reverse mortgage loan, you will remain on title and can stay in your home without making monthly mortgage payments during the loan period.¹The borrower will be required to pay for property taxes, home insurance and home maintenance .The loan balance becomes due upon the occurrence of other events including non-compliance with the loan terms.
This federally-insured loan offers multiple ways to receive the proceeds and gives you the ability to spend the cash as needed. Common uses of Reverse Mortgage loans include:
- Paying off debt
- Cover costly medical bills and prescriptions
- Home repairs and modifications
- Delay Social Security benefits²
- …and much more!
Important features of a reverse mortgage loan include:
- Proceeds from a Reverse Mortgage loan are tax-free³.
- There are multiple ways to receive the loan proceeds, either as a line of credit, a term payment, a tenure payment or lump sum.
- Live in your home with no monthly mortgage payments¹.
- The borrower must be 62 years or older (a non-borrowing spouse may be under age 62)
- The home must be and remain the borrower’s primary residence
- The borrower must own the home
- The borrower must meet the financial requirements of the HECM program
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