The only reverse mortgage loan insured by the U.S. Federal Government is a Home Equity Conversion Mortgage (HECM). The Home Equity Conversion Mortgage (HECM) was created by The Federal Housing Administration (FHA). The program allows you to withdraw a portion of your home’s equity exclusively through an FHA-approved lender and for homeowners aged 62 and older to cover expenses like home repairs or unexpected medical bills. This may be your passport to living your ideal retirement. It will enable the equity in your home to pay you rather than you paying a mortgage. Pensions are disappearing, people live longer, and medical costs keep rising. Reverse mortgages give you a chance to financial freedom.

Like a traditional reverse mortgage, the HMEC trades equity in your home for cash. No matter how much money you receive, how long you live in your home, or whatever happens in the economy, you will not be required to make a mortgage payment. In addition, regardless of your home’s value, you have assured access to your money.

A traditional reverse mortgage can be dangerous. If you exhaust all of the home equity, you risk going into debt and could lose your home. Instead, a HECM is a securer, federally insured version of the traditional reverse mortgage.

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There is a downside. If you pass away, the reverse mortgage becomes due. Your heirs have two options: Pay off the reverse mortgage to retain ownership, including the accrued interest, or give up homeownership and receive the difference after the property is sold. You will not be liable for any balance if the sales proceeds do not cover the loan.

Your loan also becomes due and payable if you do not comply with the loan terms (paying taxes, HOA, or insurance) or if you move out. You must repay the cash, interest, and finance charges when your home is sold. You will have less money to buy another home or pass it along to your heirs. Nevertheless, because HECM is a non-recourse loan, you will not end up owing more than your home is worth. If you are blessed, your home will continue to appreciate. This increase in valuation can offset the cost of the reverse mortgage program.

You have questions about Reverse Mortgage Loans, and Us Invest Financial have the answers. Please call us at (954) 993-9345 to get the answers you need or start the application process. We look forward to matching you with the HEMC loan that fits your needs.