What is a Reverse Mortgage
A traditional HECM (Home Equity Conversion Mortgage) reverse mortgage can help older adults with their financial needs in the following ways:
- A loan that allows homeowners age 62+ to tap into their home equity
- They can use the proceeds for whatever they need
- Owners keep the Title to their home, but will continue to be responsible for paying property taxes, homeowner’s insurance, and any home maintenance
No monthly payments ever – interest accrues only on the portion of the loan amount disbursed.
Borrower Eligibility Requirements
- Age 62 and over (all owners)
- Occupy home as principal residence (over 6 months per year)
- At least one spouse must be residing in home at time of closing
- Any existing mortgage or lien must be paid off at closing
What Property Requirements Must My Senior Clients Meet?*
The property must be your senior clients primary residence and may be a:
- Single-Family home
- HUD-approved condominium
- Planned unit development (PUD)
* Home must meet FHA Minimum Property Requirements.
What else do I need to know?
Federal legislation requires that the borrowers attend HECM Counseling to make sure that seniors understand the costs of a HECM as well as alternatives that may be available. NeighborWorks® Pocatello offers this valuable service for FREE with a certified HECM counselor.
Call NeighborWorks® Pocatello at (208) 232-9468 and ask for Shawna for more information.