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, any other property charges such as HOA dues, 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 (or a qualified NBS) 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.*