What is a Reverse Mortgage?
If you are 62 years or older and have significant equity in your home, you may be eligible for a Home Equity Conversion Mortgage (HECM) loan, commonly known as a Reverse Mortgage.
A HECM loan is insured by FHA and allows seniors to access a portion of the equity to be used however they choose, from paying off medical bills to supplementing their monthly income.
A HECM can also be used to purchase new home. Loan-to-value percentages are the same as for regular HECMs. The borrower can use the HECM to pay for part of the purchase, and then would have to bring a down payment equal to the remaining cost of the home.
The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the home or passes away. At that point, you or your estate must repay all the loan advances you received (including any used to finance loan costs or to pay off prior debt), plus all the interest. The remaining equity belongs to you or your estate.
In addition to being at least 62 years old, some key requirements include:
- Owning the property outright, or at least having paid off a considerable amount of your mortgage
- Occupying the home as your primary residence
- Not being delinquent on any federal debt
- Attending a session with a HUD-approved HECM counselor
With a reverse mortgage, you remain the owner of your home. So you are still responsible for paying your property taxes, homeowner insurance and for making property repairs.
Contact us for a no–cost or obligation consultation. We would be happy to discuss the Reverse Mortgage program with you and assist you with determining if it is the appropriate solution for your personal situation. You can contact Richard Woodward at (214) 945.1066 or
Richard Woodward, NMLS 217454
Office: (214) 945-1066
Interlinc Mortgage Services, LLC., NMLS 205696
7711 San Jacinto Place, Ste 100 Plano, Texas 75024
Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. InterLinc is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice.