The Home Equity Conversion Mortgage (HECM) program is funded by the Federal Home Agency (FHA) in the US. HECM is reverse mortgage program that is targeted to senior citizens above the age of 62. The loan program allows individuals to boost their monthly income, and live a comfortable post-retirement life.
In this article we will shed light on the HECM reverse mortgage. After reading the article you will be able to make up your mind whether the federal sponsored loan program is right for you or not.
HECM Reverse Mortgage: An Overview
The HECM program is targeted at individuals aged 62 or over. The loan program is offered by the Federal government to allow senior individuals supplement their monthly income to pay for necessary expenses. The loan program allows a person to obtain the loan by withdrawing a portion or the entire home’s equity.
The HECM loan can also be use to buy a primary residence. This is possible if you use the cash on hand to pay the difference between the home value and the HECM proceeds.
How Does the HECM Loan Works
If you are able to a meet the criteria set by the FHA for the HECM loan, you must contact a FHA-approved lender. The lender will tell you the requirements of the loan and the process to get the loan approved. To obtain the loan you must:
* Be aged 62 or over
* Have paid-down all or considerable portion of the house equity
* Reside in the house, which your principal place of residence
* Not be delinquent on government debt
* Able to pay
* property taxes
* home insurance
* homeowner Association fees
* house maintenance cost
* other related costs
* Participate in a session conducted by an approved HECM counselor
In order to known about additional requirements and restrictions regarding the HECM reverse mortgage loan, you can contact Longbridge Financial by calling or leaving your contact details here.
