HECM Loans
Home Equity Conversion Mortgages (HECM’s), also known as Reverse Mortgage loans, help homeowners, age 62 and better, convert a portion of their home equity into tax free cash. HECM’s are insured by the Federal Housing Administration (FHA) and allow seniors more financial security as well as the ability to age in place.
How does it work?
A HECM loan allows you to turn some of the equity in your home into cash to improve or sustain your lifestyle. You will continue to live in your home and retain ownership without the obligation to make a monthly mortgage payment. The loan balance will be re-paid when the last borrower or eligible, non-borrowing spouse has left the home or does not otherwise comply with the terms of the loan (Borrower must continue to pay property taxes, homeowner’s insurance and home maintenance costs).
How do I qualify?
You must be the vested owner on title.
One potential borrower must be 62 years old or better. The property must be a Primary Residence and Owner Occupied. Financial Assessment and Counselling will be necessary to complete the application process.
How much can I borrow?
Available funds are determined by the age of the youngest borrower or non-borrowing spouse, value of the home, and expected rate.
