Reverse Mortgage / Home Equity Conversion Mortgage (HECM)

A Reverse Mortgage can provide older homeowners an attractive solution for accessing the value in their current home. Unlike a traditional (forward) mortgage where the borrower pays the lender, a reverse mortgage works by the lender paying the customer based on the terms of the loan. The loan is repaid when the home is sold, the borrower(s) pass away or when the home is no longer the borrower’s primary residence. Not only can this type of loan be used to access the equity in one’s home, it can also be used to purchase a new home.

 

Is it Right for You?

Homeowners age 62 or older looking to access the equity in their home that can be used for nearly any purpose; funds can also be used to purchase a new home through a HECM for Purchase option.

 

Is it right for your situation?

Primary residence, single family and 2-4 unit properties, condos and townhomes, and Planned Unit Developments (PUDs); maximum loan amount up to $2,000,000.

 

Features and Benefits

  1. No monthly payments are required
  2. Receive loan proceeds as a lump sum or fixed monthly payments
  3. Flexible terms and approval guidelines (income and credit)
  4. Funds can be used for nearly any purpose (healthcare costs, retirement income, cash reserves, payoff debt, purchase new home, etc.)
  5. Homeowner is responsible for staying current on all property taxes, homeowner’s insurance and HOA dues
  6. HECM for Purchase is an FHA-insured mortgage product

 

You have seen a lot in your lifetime and, if it could talk, the home you love could probably tell some amazing stories. Now, that same home might be able to provide a comfortable pathway to ensuring your golden years are, well, golden. Like pretty much everything else, a Reverse Mortgage has pros and cons. We encourage you to speak with your family, your financial advisor and yes, venture to the internet and do some research. If and when the time is right, Gateway will be here to help.

Ready to get expert advice and determine what works best for your personal situation? Contact one of our local, caring mortgage professionals at a Branch Near You.