Frequently Asked Questions

Your Questions Answered

 

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 Advisor will provide you with your exact benefits. Find out if you qualify here.

How do I qualify for a HECM reverse mortgage?

  • At least one homeowner must be 62 years or older
  • The home must be owned and your primary residence
  • Minimal income and credit requirements
  • See if you qualify in 3 easy steps

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, homeowners insurance, and any association fees.

Do I still own my home with a reverse mortgage?

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 heard the costs are too high?

NO: The fees are limited and regulated by FHA to protect you and are comparable to a traditional mortgage.

Can I purchase a home with a HECM?

YES: You can purchase your dream retirement home with a HECM for Purchase (h3P). 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.

These are just a few commonly asked questions. If you have any further question please call us.

 
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