HECM Reverse Mortgage Products & Information
A home equity conversions mortgage, or HECM, is simply the Federal Housing Administration’s official term for a reverse mortgage. At One Reverse Mortgage, we offer three types of reverse mortgages, all of which are insured by the FHA. A HECM requires the borrower to be 62 years of age or older, have moderate to significant equity built up in their home (with the exception of the HECM for purchase loan), and use the home as their primary residence. Other than these requirements, loans can be customized to your individual needs.
The HECM Fixed Rate
A reverse mortgage fixed rate loan disperses money in one lump sum after the loan closes, with interest locked into a specific rate for the loan’s lifetime. These are excellent mortgages for people who need to pay for mandatory obligations, such as paying off mortgage balances and property liens, meeting repair requirements, and covering the closing costs associated with reverse mortgages. Money remaining after obligations are paid is available for the borrower’s immediate use.
HECM Line of Credit
The HECM Line of Credit is an option that provides financial flexibility in its many uses. It is actually the reverse mortgage product that is recommended by many financial advisors. The reverse mortgage line of credit can be utilized in the following ways:
- You can take a lump sum at closing or receive monthly disbursements. Utilizing the proceeds from your reverse mortgage could allow you to delay other retirement benefits* and accessing other investments so they have more time to grow.
- You can also start the line of credit and not take any funds. By doing this, your available proceeds can increase in value over time which could give you even more available funds later. The available funds could even exceed the value of your home!
HECM for Purchase
A “for purchase” mortgage differs from the previous loan options. Instead of allowing access to a home’s existing equity, for purchase loans allow seniors to buy a home with a reverse mortgage. Doing so allows the borrower to move into a new home with no monthly payments, providing seniors with opportunities to move closer to family or purchase homes which better meet their needs.
Talk to a One Reverse Mortgage expert today to discover which HECM is right for you!
These advertisements and materials are not provided nor approved by the U.S. Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA).
*Please consult your financial advisor.