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Home Equity Conversion Mortgage
The Home Equity Conversion Mortgage is a reverse mortgage designed by the U.S. Department of Housing and Urban Development (HUD) and insured by the Federal Housing Administration (FHA) to give older homeowners a vehicle for converting the equity in their homes to cash.
Like the Home Keeper Mortgage, the HECM allows you to tap your home equity and receive your loan proceeds according to a payment plan that you select — whether it is a lump sum to pay an unexpected hospital bill, or a stream of regular payments to supplement your monthly income. No repayment of your HECM is required until your home is no longer your principal residence — at your death, or when you sell the property, convey title, or do not occupy the property for 12 months. At that time, you or your estate will owe the loan balance or the market value of your property, whichever is the lesser amount. As with most reverse mortgages, the loan is generally repaid through the sale of the property, although sale of the property is not required. Any sales proceeds in excess of the amount owed the lender belong to you or your estate. All Fannie Mae-approved lenders must offer the HECM product as well as the Home Keeper. (In Texas, different rules and regulations apply. Consult a local lender or nonprofit reverse mortgage counselor for a detailed explanation.)
Read below more on Reverse Mortgage here
Mortgage Guide – Is Reverse Mortgage Right for you
Mortgage Guide – Tips to Watch out for with Reverse Mortgages
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Mortgage Guide – Understanding Home Equity Conversion Mortgage is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
- Mortgage Guide – Tips to Determine Home Equity Conversion Mortgage Loan Balance Your loan balance represents the total amount you owe in principal, interest, and any other loan costs that are not paid for in cash, such as servicing fees, origination fees,......
- Mortgage Guide – Do you qualify for Home Equity Conversion Mortgage The eligibility requirements for a HECM are quite simple and do not impose any minimum or maximum limits on income: • You, and any of your co-borrowers, must be at......
- Mortgage Guide – Why Choose Home Equity Conversion Mortgage A significant feature of the HECM is that it is insured under the government’s Federal Housing Administration (FHA) insurance program. This program ensures that you will receive all payments due......
