Home Equity Conversion Mortgages
An FHA-insured Home Equity Conversion Mortgage (HECM) may allow eligible homeowners age 62 or older to access home equity or finance a qualifying home purchase. Age, property, equity, financial assessment, and counseling requirements apply.
Important continuing obligations
Although a HECM generally does not require monthly principal-and-interest payments while its conditions are met, borrowers must satisfy property-tax, homeowners-insurance, maintenance, and principal-residence requirements. Other property charges may apply. Failing to meet loan obligations can lead to the loan becoming due and foreclosure.
Costs and repayment
Interest, mortgage insurance, and applicable fees can increase the loan balance over time and reduce remaining equity. Repayment becomes due under the loan’s terms, including applicable sale, occupancy, and death-related events. Protections and options for a non-borrowing spouse or heirs depend on the circumstances and loan requirements.
Consider alternatives
Review other financing or housing options and discuss costs and obligations with a HUD-approved HECM counselor. A reverse mortgage is a loan secured by the home, not a government benefit or a promise of free funds.
First Rate Home Loans, LLC is not affiliated with or acting on behalf of FHA, VA, USDA, or the federal government.
Discuss your options
A Loan Officer can explain product availability, eligibility, and costs for your situation. Find your Loan Officer.