HECM Reverse Mortgage Basics

Overview of Home Equity Conversion Mortgage (HECM)

The New Federally Insured HECM Credit Line can help you achieve Financial Peace of Mind by allowing you to meet your retirement goals. Continue reading to understand what a HECM is, its benefits and common ways people use their HECM Credit Line.

What is an HECM?

HECM stands for Home Equity Conversion Mortgage. It is a smart type of home equity line of credit geared toward helping retirement-aged homeowners gain better control over the repayment of their mortgage. Essentially, a Home Equity Conversion Mortgage allows you to withdraw a portion of your home’s equity, making it a financially-viable way for people to supplement their retirement funds.

With an HECM, you retain full ownership of your home just as you would with a traditional mortgage. However, an HECM has many benefits not present with a traditional mortgage.

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Benefits of HECMs

There are many benefits of an HECM. These include:

  • Ability to pay any amount, any time: One of the most significant benefits of a HECM is the flexibility it provides. With an HECM, you can pay any amount at any time towards the balance. You can pay interest only, principal and interest, or no payment at all. Every retiree could use this kind of flexibility so that they can better enjoy their after-work years, stress-free.
  • HECM credit line increases: Another great benefit is the limit of your available HECM Credit Line increases every year automatically, giving you access to additional funds as needed throughout your retirement years. This can make all the difference as you navigate retirement life! 
  • FHA regulation: The Federal Housing Administration regulates fees so that they are comparable or less than traditional mortgages.
  • Being based on more than credit score: HECMs are not based solely on credit score or income, making them a more viable option for many people. 
  • Ability to pay off credit card debt: In addition to the benefit of paying off your current mortgage which increases your monthly cash flow, a HECM Credit Line can also be used to pay off credit card debt, make home repairs or improvements as well as many other purposes as listed below. 
  • Flexible access to funds: You can receive your funding as needed, through monthly payments or as a lump sum, or a combination of all three. It’s all about what will work the best for you and your needs.

Common Ways Florida Homeowners Use Their HECMs

  • Retire your existing mortgage.
  • Supplement your income.
  • Replace lost social security or pension income.
  • Pay off credit cards & other debt.
  • Protect your portfolio from a down or bear market.
  • Do home improvements or needed repairs.
  • Install senior-friendly home modifications.
  • Advance inheritance money to your heirs.

HECM Eligibility

To be eligible for a HECM in Florida you must:

  • Have at least of the homeowners must be 62 years old or older.
  • Own your home.
  • Ensure the home is your primary residence.

There are also some minimal income and credit requirements. Use our tool to see if you qualify in just three steps!

It’s important to note you will also need to attend a counseling session to receive an HECM in Florida. The session is a wonderful opportunity to ask questions and gain more knowledge about the HECM process.

Once you’ve finished the counseling session, you’ll receive a signed and dated certificate. Then you’ll be ready to move on to the next step: completing your application!

Choose Senior Lending Corporation for Your Florida HECM

Senior Lending Corporation is Florida’s #1 reverse mortgage company. We know you value honesty and integrity, and we’re committed to giving you flexible options and responsive service. Our specialists get extensive training and are dedicated to helping you find the program that works best for you.

We’ll stay with you every step of the way, from the very beginning until the final closing. You can trust us to make the process as stress-free as possible so you can get back to enjoying your retirement.

Contact Senior Lending Corporation for More Information

As you can see, the funds can be used for any situation you may have. No matter what your current financial situation, a Federally Insured HECM Credit Line can secure and enhance your retirement.

We look forward to the opportunity to serve your financial needs.