Reverse Mortgage

If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA's Home Equity Conversion Mortgage (HECM) refinance program. The HECM is FHA's reverse mortgage program that enables you to withdraw a portion of your home's equity.

You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

The most attractive feature of a HECM is that borrowers make no mortgage payments as long as they occupy the property as their primary residence.  Although no regular monthly payments are due, borrowers are responsible for paying property taxes, insurance, and ongoing property maintenance expenses.  In some cases a set-aside account can be set up to pay taxes and insurance.

How the Program Works

There are many factors to consider before deciding whether a HECM is right for you.  To aid in this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable.  Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs. You can search online for a HECM counselor or call (800) 569-4287 toll-free.

There are borrower and property eligibility requirements that must be met.  Click on the link below see if you meet general requirements. If you meet the eligibility criteria, you can complete a reverse mortgage application by contacting us.  We will discuss other requirements of the HECM program, such as first year payment limitations, available payment options, the loan approval process, and repayment terms. 


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