WE DO REVERSE MORTGAGE RIGHT
A Few of the Loan Benefits
Are you on track to meet your retirement needs and satisfy your wants, now and in the future?
“Historically, people have sought HECM loans as a way to make ends meet, as they balance the costs of health care, housing and other basic needs in their retirement years. But in today’s housing market, it has become more common to see people using them to eliminate their monthly mortgage payments.”
(Wall Street Journal, June 27, 2010)
A Home Equity Conversion Mortgage (HECM) may help give you the cash you need to meet your goals
WHO IS ELIGIBLE
To be eligible for a HECM loan, some key requirements are:
•The youngest borrower must be atleast 62 years of age
•You must live in your home as yourprimary residence and havesufficient equity
•Be able to pay off your existingmortgage using the HECM loanproceeds
•Live in a single family, two to fourunit1 owner-occupied home,townhouse, approved condominiumor manufactured home
•Must meet financial
•Eliminates your existing monthly mortgagepayments1
•You can stay in your home and maintain the title
•Loan proceeds are tax-free and can be used anyway you choose2
•Heirs inherit any remaining equity after paying offthe HECM loan
•The HECM loan is FHA insured.
1 You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. 2 Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
WHAT WE REQUIRE
In addition to eligibility, you must meet the following conditions to obtain a HECM loan:
•Complete a HUD approved counselingsession
•Maintain your home according to FHArequirements
•Continue to pay property taxes andhomeowners
If you’re 62 or older – and want money to pay off your mortgage, supplement your income, or pay for healthcare expenses – you may consider a reverse mortgage. It allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills."
WHAT'S THE CATCH : NO HIDDEN FEES ALL COST DISCUSSED UP FRONT
•Most fees can be financed into the loan= no out-of-pocket lender costs1
•Loan origination fees – cappedby HUD
•Appraisal, credit report, title andescrow fees
•FHA mortgage insurance premium(MIP).
The HECM is available as either an adjustable- or fixed-rate loan. With the adjustable rate, the rate is adjusted monthly based on the LIBOR (London Inter Bank Offered Rate). The fixed-rate HECM maintains the same interest rate over the life of the loan.
HECM for Purchase Loan
The HECM for Purchase can help homeowners buy their next home without having to make monthly mortgage payments. This loan enables homeowners to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Regardless of how long you live in the home or what happens to your home’s value, you only make one, initial investment (down payment) towards the purchase.