Frequently Asked Questions

How much of a Credit Line
do I qualify for?

The amount depends on several factors including: your age, home value and current interest rates.
Your personal Senior Lending Specialist will provide you with your exact benefits.

How do I qualify?

• At least one homeowner must be 62 years or older
• The home must be owned and your primary residence
• Minimal income and credit requirements

How do I access money from my HECM Credit Line?

• A Growing Credit Line:   Withdraw cash as needed
• A Monthly Supplement:   Increase your current income
• All at once:   As a lump sum amount
• Or a combination of these

Do I still pay my property taxes
and Insurance?

YES: You only have to pay your property taxes and your homeowners insurance.

Do I still own  my home?

YES: A HECM is a lien just like a traditional mortgage. You will always retain 100% ownership, as well as
the right to sell your property at any time. Repayment is generally required when the last surviving spouse
permanently moves out, sells or passes away. The remaining equity in your home belongs to you and your heirs.

Can I make payments on my HECM Credit Line balance?

YES: You have the option every month to pay either:

• Interest only
• Principal & Interest
• or, NO Payment at all

Having the Flexbility to pay on your own terms is another way to ensure monthly cash flow.

Will my heirs still inherit my home?

YES: Your home transfers to your heirs the same way as with your current mortgage. They have up to 12 months (unlike your current mortgage) to pay off the HECM loan. They can settle the debt with a refinance or simply sell the property. ALL remaining equity goes to your heirs, not the bank!

I've heared the costs are too high?

NO: The fees are limited and regulated by HUD to protect you and are comparable to or less than a
traditional mortgage. Also Senior Lending has a no closing cost option.

Can I purchase a home with a HECM?

YES: You can purchase your dream retirement home with a HECM for Purchase (H4P). The HECM will provide you a lump sum, approximately 50%, towards the Purchase Price. You would only need to bring the other 50% at closing. This unique program saves you from having to pay 100% cash to achieve NO monthly mortgage payments!

Will I owe more than the value of my home after I pass away?

NO: A HECM is a "non recourse" loan, which means that you, your heirs or your estate cannot be
required to repay more than the current appraised value of your home.