About Reverse Mortgages
Reverse mortgages, also known as home equity conversion mortgage (HECM), allows homeowners 62 or older to tap into the equity of their home. The equity is available in the form of a line of credit, monthly payment or a lump-sum payment. The actual amount available will depend on the market interest rate, type of loan (HECM Standard, HECM Saver, or other), equity in home, location and age of homeowners.
One of the best benefits of a HECM is the loan does not have to be paid off until the borrower on the loan passes away or decides to sell the home.
- 62 or Older (Homeowners who are 61 1/2 are able to start the application process but the loan cannot close until the borrower is 62)
- Borrower must complete a reverse mortgage counseling session
- Property must be HUD approved (single family, some condos and townhomes, some manufactured homes)
- Equity in the home