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Reverse Mortgage (HECM)

Preparing yourself and your family for the future


There can be so much conflicting information surrounding Reverse Mortgages that you may suffer from information overload

Here are some facts about a Reverse Mortgage or HECM (Home Equity Conversion Mortgage)


Did you know?


  1. You retain full ownership and title of your property.
  2. So long as one borrower occupies and maintains the home, and complies with the terms of the loan, you cannot be required to leave or sell the home. Borrowers must maintain the property and remain current on property taxes, homeowner’s insurance, and HOA dues.
  3. You will not owe more than the value of the home at the time the reverse mortgage is repaid. Reverse Mortgages are considered non-recourse loans and are secured by the property. Because of this, you cannot leave yourself or your family in debt. In the event borrowers or their heirs are unable to repay the mortgage balance, the mortgage insurance premium covers the difference.
  4. Proceeds from a reverse mortgage are not taxable
  5. A reverse mortgage can be used to pay off an existing mortgage balance on your current home or used in the purchase of a new home that might better suit your needs.


Reverse Mortgage (HECM) for Purchase


Is a Home Equity Conversion Mortgage (HECM) for purchase (H4P) right for you?


Whether you are a first-time home buyer or moving to a home that better suits your lifestyle, The Home Equity Conversion Mortgage used as a purchase loan helps older homebuyers fulfill their dreams of buying a home without qualifying for or affording monthly mortgage payments. *

JACK’S STORY

Jack was living on a fixed income and owned a home with a very small mortgage in another state away from his family when he decided it was time to move closer. Taking advantage of the surge in real estate values he was able to sell his home at a great price but this meant that home values had gone up where he wanted to buy as well. He didn’t want to have a mortgage payment anymore because of his fixed income, but the homes available that he could buy for cash were just not what he wanted.


Enter the HECM 4 purchase. Using this strategy, Jack was able to buy his dream stucco home, have no monthly mortgage payment,* and keep some of the proceeds from the sale of his home in his bank account for a rainy day.


* The owner of the property is always responsible to maintain the home and pay their property taxes and homeowners insurance independently.


Reverse Mortgage (HECM) for Refinance


Refinancing your existing traditional mortgage into a HECM (Reverse Mortgage) can eliminate your monthly principal and interest payments * and/or access your home’s equity while still owning and living in your home. Given the right set of circumstances, a HECM Reverse Mortgage can be an ideal way to increase your financial security in retirement.

SUSAN’S STORY

Susan was a widow who lived in a stone home on 5 acres that her husband built for her 70 years ago. The home was owned free and clear. As a strong, independent woman who raised her family in the railroad towns of eastern Nevada, Susan had no intention of ever leaving her home.


By using a Line of Credit Reverse Mortgage, we created a situation where Susan could access the funds as she needed with no monthly mortgage payment.* This line of credit, which grew every year, was used to cover maintenance expenses of the property, and ultimately provided 24-hour in-home care so that she can live out her days in peace, surrounded by the strength of the walls that her husband had built for her, fulfilling her promise to him to never sell the home while she was alive.


* The owner of the property is always responsible to maintain the home and pay their property taxes and homeowners insurance independently.


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