What Is The Difference Between A Reverse Mortgage And A HECM?
The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender. The HECM is FHA's reverse mortgage program that enables you to withdraw a portion of your home's equity.
How does a HECM loan work?
The HECM is a government-insured reverse mortgage loan that allows homeowners who are 62 and older to convert their home equity into cash. The loan first pays off the existing mortgage, if there is one, then the rest of the money can be used for anything.
Home Equity Conversion Mortgage (HECM)
What are the 3 types of reverse mortgages?
There are three kinds of reverse mortgages: single purpose reverse mortgages – offered by some state and local government agencies, as well as non-profits; proprietary reverse mortgages – private loans; and federally-insured reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs).
Reverse Mortgages | FTC Consumer Information
What can a HECM be used for?
With a HECM for Purchase, borrowers have access to a financial tool that helps them to: avoid draining assets, acquire a more fitting home, and age there with no monthly mortgage payments. Borrowers are responsible for paying property taxes, homeowner's insurance, and for home maintenance.
How a Reverse Mortgage Can Help You Buy a New Home
What is HECM loan on reverse mortgage?
The Home Equity Conversion Mortgage (HECM) is Federal Housing Administration's (FHA) reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both.
Home Equity Conversion Mortgages (HECM) | Benefits.gov