A Federally insured loan that allows homeowner’s that are 62 and older receive cash from the equity in their home in a lump sum, line of credit or monthly payments. 

Key Takeaways:

• The non-recourse feature means the borrower can never owe more than the home is worth when the loan is repaid.
• The HECM loan allows you to establish a flexible line of credit from the equity in your home.  
• No monthly payment is required on any cash received as long as you remain in the home as your primary residence.  
• Although no monthly mortgage payment is required you can pay back any portion at any time.
• Borrowers are responsible for paying property taxes and homeowner’s insurance

A Home Equity Conversion Mortgage (HECM) for Purchase is a reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.

Key Takeaways:

• The non-recourse feature means the borrower can never owe more than the home is worth when the loan is repaid.
• Borrower will need cash on hand to cover a sizable down payment. (e.g. from the sale of a home)