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Home Equity Conversion Mortgages

Home Equity Conversion Mortgages

A Home Equity Conversion Mortgage (HECM) loan – also known as a reverse mortgage – can be an important financial option for seniors, their family members, and financial professionals to consider as part of an overall retirement planning strategy or to help meet cash flow needs. A HECM loan is insured by the Federal Housing Administration (FHA)1 and allows senior homeowners 62 and over to access part of the equity in their home to help them live more comfortably during retirement. With a HECM loan, there are:
  • No monthly mortgage payments2
  • No upfront lender fees
  • Fixed and variable rate options
Borrowers must live in the home as their primary residence and continue to pay for property taxes, insurance and home maintenance based on program guidelines as established by the Federal Housing Administration (FHA). Failure to meet these requirements can trigger a loan default that may result in foreclosure. To learn more, visit our Consumer Website

Important Disclosures

  1. As required by the Federal Housing Administration (FHA), you will be charged an initial mortgage insurance premium (MIP) at closing and, over the life of the loan, you will be charged an annual MIP based on the loan balance.
  2. You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.