Officially it is called a Home Equity Conversion Mortgage or “HECM” for short. This is a unique loan designed for seniors 62 years of age and older. It allows you to get equity out of your home to provide current income or any other goal you may have, without ever having to make a *monthly mortgage payment on the loan as long as you live in your home and abide by the HUD guidelines. If you live in your home until your death, your heirs will have the choice to payoff the loan or sell your home and keep any equity that is left. The mortgage company pays you, instead of you paying them!
*Borrower risks foreclosure for failing to remain current on property taxes, homeowners insurance and HOA fees”.
How do you qualify?
- You must be age 62 or older
- Own and have equity in your home
- Plan to use as your primary residence
- Need or want extra cash or income
- Receive HUD counseling
- Appraisal and pest inspection fees may apply