HECM Reverse Mortgage Facts
*NOTE: SSI and some other low income assistance programs can be effected by cash accumulation in your bank account. Please consult the appropriate program advisor.
- HECM loans are often an
appropriate and valuable financial tool
for seniors in need.
- Reverse mortgages are
not for everybody. See the four reasons that a reverse mortgage might not be your best option.
- Your home is not sold or given to the bank. You remain in title and control of your property.
- The loan proceeds you receive are tax free. (Please insert the usual disclaimer of "Consult Your Tax Advisor" here.)
- There are no monthly payments required on principal and interest. HECM borrowers are responsible for the payment of property taxes, homeowners insurance, and the maintenance of their home.
- HECM borrowers must credit/income qualify under HUD/FHA's Financial Assessment guidelines.
- Most loan fees can be financed into the loan.
- There are no restrictions on how you may use the loan funds.
- The loan is never due and payable as long as one of the borrowers lives in the home. There are no time or age limits - even if you live to be 120!
- Upon the sale of your home and paying off the HECM loan, all remaining equity in your home goes to you or your heirs.
- HECM Reverse Mortgages are non-recourse loans, which means that you or your heirs will never owe more on this loan than the fair market value of the home. (See living to 120 above.)
- Your Social Security benefits will not be effected.*