Three different types of Reverse Mortgages…which one
is right for you?
HECM-FHA (Home Equity Conversion Mortgage)
- Lending limit based upon geographic area.
- In Arizona (depending on the county) a single family can presently get up to $332,500.00 all the way up to $525.000.00
for a 4 plex home.
- Other states will have their own lending limits.
- No More Mortgage Payments Ever!
- Loan becomes due upon passing of homeowner***, homeowner chooses to sell or homeowner resides outside of home
for 12 consecutive months.
- Non-recourse loan*
- Available to homeowners 62 and older
- No traditional income or credit approval
- No Restrictions on use of loan proceeds income. (tax free**)
- Funds are available as cash payment, line of credit, tenure payment (monthly income for as long as the borrower lives
in the home), or term payment (you set how much you would like every month which will have a cap) or any combination
- Available balance in the line of credit grows annually
- Closing costs are financed into your loan
- Social Security or Medicare eligibility should not be affected
Statistically 95% or more of all Reverse Mortgages are
originated using the HECM program.
HOMEKEEPER - Fannie Mae Product
- Lending limit based upon the geographic area (up to $417,000.00 currently)
- All other guidelines will match those of the HECM product.
Why then do more people take the HECM loan rather than the HomeKeeper? Everyone’s scenario is different but
you will find in most cases that the HECM program will give a lower interest rate, and a much higher amount of equity withdrawal
will be allowed.
In some cases the HomeKeeper is a better program. Don’t worry you will be seeing all the options first hand.
This decision is always up to you.
CASH ACCOUNT - Financial Freedoms Product
- NO Maximum Lending limit
- No Monthly Mortgage Payments ever! Loan becomes due after the homeowner passes or as long as the borrower lives in the
home as their primary residence.
- Non-recourse loan*
- Available to homeowners 62 and older
- No income or credit approval
- No restrictions on use of loan proceeds (tax free**)
- Available balance in the line of credit grows by 5% annually.
- Loan origination and closing cost are financed into the loan
- Some loan programs have NO CLOSING COSTS AT ALL
- Social Security or Medicare eligibility should not be affected
- Minimum draw on the line of credit is $500
* Consult tax advisor
** The borrower or their heirs can never owe more than the value of the home even if more money has been borrowed
against the home than it is worth.
*** Homeowner as written is also know as the Borrower/Borrowers
It may sound a bit overwhelming but that’s why I am here, for you. Fill out the “request
free information” form and I will show you how these programs will work for you, it can be that simple.
