PROGRAM DETAILS
- No payment option available*
- HECMs are federally insured.
- Same products, limits, LTVs, and rates as traditional mortgages
- Excellent planning tool to fund retirement
THE FINE PRINT
- Must be 62 years old, or older
- Applies only to owner-occupied, primary residences
- Mandatory HUD counseling
- The homeowner is still responsible for property taxes, homeowners insurance, upkeep and any relevant HOA fees.
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds;
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees;
- The loan balance grows over time and interest is charged on the outstanding balance;
- The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.