Reverse Mortgage or Home Equity Conversion Mortgage (HECM)
Our agency has a HECM certified counselor willing to answer questions & schedule appointments for homeowners considering a reverse mortgage. We, along with the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) want to ensure you are able to make an informed decision and that you are able to choose a course of action that will meet your needs. For this reason, housing counseling for HUD’s Home Equity Conversion Mortgage (HECM) is required.
The fee for this counseling is $125. Depending on your level of income and ability to pay this fee will either be charged up front at the time of the counseling or be included in the closing costs of your reverse mortgage.
What is a Reverse Mortgage?
- A Reverse Mortgage is a loan against home equity.
- Can provide cash advances to a borrower or just pay off an existing mortgage
- It requires no repayment until a future time. You must repay when:
- The home is no longer your primary residence
- You do not occupy the home for the majority of the year
- The last borrower on the loan passes away
- If you fail to maintain, insure and pay taxes on the property
- All Borrowers must be 62 or older
- Occupy home as primary residence
- Own the home or be able to pay off any existing liens with funds from the Reverse Mortgage
- Single Family 1-4 unit
- FHA approved condo’s
- Manufactured home
- only eligible if borrower owns the land, home is permanently affixed to a foundation, and built after June 15, 1976
- Planned unit developments may be eligible
For your appointment please bring:
- Proof of income
- Property tax notice