HECM
What is a HECM?
HECM or Home Equity Conversion Mortgage is the FHA insured reverse mortgage product.
It is a loan that enables homeowners 62 and over to convert some of the equity in their homes, without having to sell the home, give up the title or take on a new monthly mortgage payment (principal & interest).
❖ Home Equity Loan that provides funds to borrowers based on age and home value
❖ Homeowners normally defer payment of the loan until they
● Pass away
● Sell or transfer title
● Permanently move
❖ Should Not affect Social Security or Medicare benefits
❖ May affect SSI and Medicaid (consult with appropriate government agency)
❖ Borrowers continue to be responsible for property taxes, homeowners
insurance, home maintenance and all property charges (HOA dues, etc.)
Borrower Eligibility
❖ 62 or older
❖ Own and occupy the property as the principal residence
❖ Complete a HECM Counseling session
Property Eligibility
❖ Single family homes
❖ 2-4 family dwelling
❖ FHA approved condominiums
❖ Manufactured housing that qualifies under FHA guidelines
❖ All properties must meet FHA property standards and flood requirements
❖ Must be the primary residence
HECM or Home Equity Conversion Mortgage is the FHA insured reverse mortgage product.
It is a loan that enables homeowners 62 and over to convert some of the equity in their homes, without having to sell the home, give up the title or take on a new monthly mortgage payment (principal & interest).
❖ Home Equity Loan that provides funds to borrowers based on age and home value
❖ Homeowners normally defer payment of the loan until they
● Pass away
● Sell or transfer title
● Permanently move
❖ Should Not affect Social Security or Medicare benefits
❖ May affect SSI and Medicaid (consult with appropriate government agency)
❖ Borrowers continue to be responsible for property taxes, homeowners
insurance, home maintenance and all property charges (HOA dues, etc.)
Borrower Eligibility
❖ 62 or older
❖ Own and occupy the property as the principal residence
❖ Complete a HECM Counseling session
Property Eligibility
❖ Single family homes
❖ 2-4 family dwelling
❖ FHA approved condominiums
❖ Manufactured housing that qualifies under FHA guidelines
❖ All properties must meet FHA property standards and flood requirements
❖ Must be the primary residence
HECM For Purchase
What is a HECM for Purchase or H4P?
It is a financing option specifically for home buyers who are age 62 and older that may help you get the funds you need to buy the home you want.
Unlike a traditional mortgage, there are no monthly principal and interest payments, which can help boost your cash flow. You own the home as long as you live in it.
It enables you to purchase a home by combining a one-time investment of funds with loan proceeds from a HECM to complete the transaction. The home you are purchasing secures the loan.
The loan is due when you:
It is a financing option specifically for home buyers who are age 62 and older that may help you get the funds you need to buy the home you want.
Unlike a traditional mortgage, there are no monthly principal and interest payments, which can help boost your cash flow. You own the home as long as you live in it.
It enables you to purchase a home by combining a one-time investment of funds with loan proceeds from a HECM to complete the transaction. The home you are purchasing secures the loan.
The loan is due when you:
- Pass away
- Sell the home
- Move or transfer title
- Fail to meet the borrower responsibilities
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Borrower Responsibilities
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Eligible Properties
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Required Before Application
- Sales Contract-No seller concessions allowed
- HECM Counseling Certificate
- Certificate of Occupanc
How does it work?
The HECM for Purchase program requires an up-front investment (down payment) from the buyer of about 45% to 55% of the purchase price. The down payment must come from assets you already own-such as money from the sale of a current home or investment or funds you have in a checking, savings, CD, or retirement account. The funds cannot be borrowed.
How is it different?
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HECM for Purchase
Requires no montly principal and interest payments throughout the life of the loan.* Interest and fees are added to the balance so that it increases over time, rather than decreasing. |
Traditional Mortgage
Limits the amount you have to invest up front, and lets you build equity over the life of the loan. However, the monthly principal and interest payments reduce your cash flow, and could be an unwelcome financial burden. |
Jumbo Reverse Mortgage
What is a Jumbo Reverse Mortgage?
It is a proprietary reverse mortgage that can offer more funds for higher value homes. It may be a better option for homes appraised above the HECM lending limit of $765,600. I have an assortment of Jumbo products to choose from including a second mortgage option.
Jumbo Reverse Mortgage vs HECM:
It is a proprietary reverse mortgage that can offer more funds for higher value homes. It may be a better option for homes appraised above the HECM lending limit of $765,600. I have an assortment of Jumbo products to choose from including a second mortgage option.
Jumbo Reverse Mortgage vs HECM:
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Jumbo Advantages
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HECM Advantages
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Aiken, SC Reverse Mortgage Information
Call me if you are seeking a Reverse Mortgage lender serving Aiken, SC.
Call me if you are seeking a Reverse Mortgage lender serving Aiken, SC.
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Local
My name is George Stewart and I have been serving Aiken, SC as a Reverse Mortgage Consultant since 2002. Experienced I have been a Reverse Mortgage loan specialist for over 20 years and cover the entire state of South Carolina including Aiken. Consultations are free and available by telephone or in person. Experience should be an important consideration when choosing among reverse mortgage lenders in Aiken. Specialist Reverse Mortgage lending is my full time profession and I don’t originate any other mortgage products. My specialty is the federally insured Home Equity Conversion Mortgage (HECM). Convenient We can meet in the comfort and convenience of your home if you decide to apply. I still make house calls-to Aiken or anywhere in South Carolina. No Pressure I believe in a consumer education process and not a hard sell. My approach is low key, without pressure, and you can take all the time you want to make a decision. Options A Reverse Mortgage loan is a complex financial transaction. It might be wise to consult a specialist to review its many features and get the facts. I am an experienced loan officer who can help you to ascertain your options and convey how a Reverse Mortgage might apply to your specific circumstances. |
Reverse Mortgage At A GlanceA home loan that allows you to access some of the equity without having to make monthly principal and interest payments.
Minimum Borrower Requirements:
Minimum Property Requirements:
Borrower's Continuing Responsibilities
Please click the buttons for detailed information.
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Your Goals
My purpose is to find out what you want to accomplish and to completely answer any questions you have. I am a good listener and will try to pick up on your concerns and make a Reverse Mortgage easy to understand.
Personalized Information
You can receive a free customized information packet based on your individual goals and circumstances.
Straight Talk
The ultimate objective is to build a relationship by being straightforward and not promising things I cannot do.
That includes discussing both the pluses and the minuses of a Reverse Mortgage so you can make an informed decision that’s right for you.
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The Reverse Mortgage Process The typical process is outlined on the left. Not all loans are approved and funded. Please click on the details button for more information. HECM for Purchase HECM for purchase is a financing option specifically for home buyers who are age 62 and older. It may help you use a Reverse Mortgage to get the funds you need to buy the home you want. It enables you to purchase a home by combining a one-time investment of funds with the loan proceeds from a HECM to complete the transaction. The home you are purchasing secures the loan. Reverse Mortgage Lenders Aiken, SC Thank you for visiting my website. I hope you will consider me when choosing between lenders serving Aiken. Please contact me at 843-771-3677 for more information or click the buttons below. |
Home
George Stewart
Reverse Mortgage Consultant NMLS 506558 (843) 771-3677 Office (843) 818-7676 Cell Advisors Mortgage Group LLC 242B Luden Drive Summerville, SC 29483 Branch NMLS # 2556464 |
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Copyright © 2023 by George Stewart
All rights reserved. The author is solely responsible for this content and is not affiliated with or acting on behalf of any government agency.
All rights reserved. The author is solely responsible for this content and is not affiliated with or acting on behalf of any government agency.
This material is not from, approved, or issued by the FHA, HUD, or any government agency. The content on these pages is for informational purposes only and is subject to change without notice. Please consult a professional for tax or financial advice.
A reverse mortgage is a home loan and not a government benefit. The borrowers must continue to own and occupy the property as the primary residence and are responsible for paying property taxes, homeowner's insurance, and property maintenance.
A reverse mortgage is a rising debt, falling equity loan. Negative amortization causes the loan balance to increase as accrued interest and fees are added. Failure to comply with the terms and conditions of the loan could trigger a loan default that results in foreclosure.
Subject to underwriting approval. Application is required and not all applicants will be approved. Full documentation and property insurance required. Loan secured by a lien against your property. Fees and charges apply and may vary by product and state. Terms, conditions and restrictions apply.
A reverse mortgage is a home loan and not a government benefit. The borrowers must continue to own and occupy the property as the primary residence and are responsible for paying property taxes, homeowner's insurance, and property maintenance.
A reverse mortgage is a rising debt, falling equity loan. Negative amortization causes the loan balance to increase as accrued interest and fees are added. Failure to comply with the terms and conditions of the loan could trigger a loan default that results in foreclosure.
Subject to underwriting approval. Application is required and not all applicants will be approved. Full documentation and property insurance required. Loan secured by a lien against your property. Fees and charges apply and may vary by product and state. Terms, conditions and restrictions apply.