My goal is to help you achieve the peace of mind and financial solution that a reverse mortgage can provide you.

A HECM Loan Defined?

A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan which enables you to access a portion of your home's equity to obtain tax-free funds without having to make monthly mortgage payments.

If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to:

  • Pay off your existing mortgage
  • Continue to live in your home and maintain the title
  • Pay off medical bills, vehicle loans or other debts
  • Improve your monthly cash flow
  • Fund necessary home repairs or renovations
  • Build a “safety net' for unplanned expenses

A Few of the loan Benefits:

  • Eliminates your existing mortgage payments
  • You retain ownership of your home
  • Heirs inherit any remaining equity after paying off the HECM loan
  • The HECM loan is FHA insured

Eligibility, some key requirements:

  • The youngest borrower must be at least 62 years of age
  • You must live in your home as your primary residence and have sufficient equity
  • Be able to pay off your existing mortgage using the HECM loan proceeds
  • Live in a single family, two to four unit owner-occupied home, townhouse, approved condominium or fairly new double-wide manufactured home
  • You must complete a HUD approved counseling session
  • After taking out the HECM loan, you must continue to pay the property taxes and homeowners insurance and maintain the home

Types of loans:

The HECM is available as either an adjustable or fixed rate loan. With the adjustable, the rate is adjusted either monthly or annually based on the corresponding LIBOR (London Interbank Offered Rate) index. The fixed rate HECM maintains the same interest rate over the life of the loan, but may reduce the amount of available proceeds depending on your situation.

HECM for Purchase
The HECM for Purchase program can help homeowners buy their next home without having to make monthly mortgage payments.

Federal Housing Administration (FHA) Insured
HECM loans are FHA insured. You are protected against lender insolvency and can expect to receive your proceeds.
Capped Interest Rates
If your loan has an adjustable interest rate, there is a limit on how much the interest can change during over the life of the loan. Most adjustable rate loans are capped at 5% from the start rate.

Non-recourse Loan
Neither you nor your heirs are personally responsible for repayment of the loan.
For a free, no obligation proposal, please call me at (505)690-1029.


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