FHA Reverse Mortgages (HECMs) for Seniors
If you are a homeowner age 62 or older and have paid off your mortgage or have a considerable amount of equity in your home and are currently living in the home, you may wish to participate in FHA’s Home Equity Conversion Mortgage (HECM) program.
The HECM is FHA’s reverse mortgage program that enables you to withdraw some of the equity in your home over time or choose a single disbursement lump-sum payment at the time of mortgage closing.
Reverse mortgages can promote economic security and independence by allowing seniors the ability to live in their homes and gain access to the equity in their home and turn it into tax free cash without incurring a monthly repayment obligation. Seniors will retain full ownership of their home.
Loan amounts are based upon current interest rates, the age of the youngest borrower, and the appraised value of the home (up to certain limits). Loan repayment is not required as long as the customer remains in the home, maintains the property, and pays property taxes and homeowner’s insurance.
You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price, plus closing costs for the property you are purchasing.
First Nations Home Mortgage never charges for consultations to determine eligibility. Call us today to discuss your options.