A Reverse mortgage or HECM, (Home Equity Conversion Mortgage) is exclusively for homeowners 62 years of age or older with equity in their homes and wish to supplement their income. The Reverse Mortgage is insured by the U.S. Federal Government is, and is only available through an FHA-approved lender. If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, are currently living in the home, you may be eligible to participate in FHA’s HECM program. The HECM is FHA’s Reverse Mortgage Program that will enable a qualified home owner, to withdraw a portion of the home’s equity. The amount that will be available for withdrawal varies by borrower and depends on:
Age of the youngest borrower or eligible non-borrowing spouse;
Current interest rate; and
Lesser of appraised value or the HECM FHA mortgage limit or the sales price.
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
A Reverse Mortgage, HECM, may be used to purchase a primary residence, if the borrower has sufficient cash available, to use to pay the difference between the HECM proceeds and the sales price plus closing costs, for the property being purchased.
A Reverse Mortgage applicant must participate in a consumer information session with an approved HECM counselor to determine the feasibility of a HECM mortgage, & receive certification / notification of completing this step prior to proceeding with the Reverse Mortgage / HECM loan application.
To learn more about FHA’s HECM program, please contact Kenny Minkel @ his direct # (805) 320-7898, or via E-mail @ Kenny@CoastPro.net