Reverse Mortgage Loans
Home Equity Conversion Mortgages (HECM) Loans
A reverse mortgage loan is a Federally-insured loan backed by the U. S. Department of Housing and Urban Development (HUD).
If you qualify, a HECM loan would enable you to withdraw a portion of your home’s equity. Which can be used to pay for unexpected expenses, such as nursing home costs or long-term care. It could also provide you with additional cash flow for all the expenses you have.
As long as all loan terms are met, the loan does not require repayment until the last surviving borrower permanently moves out of the home, or passes away.
How much you can borrow with a HECM loan depends on several factors, including:
Reverse Loans
List of Services
-
1. Home Equity Conversion Mortgages (HECMs)List Item 2
Unlock the Potential of Federally-Insured Reverse Mortgages with HUD.
Discover the advantages of federally-insured reverse mortgages, proudly supported by the U.S. Department of Housing and Urban Development (HUD). HECM loans provide you with the flexibility to access a portion of your home's equity, which can be utilized for a wide range of purposes. The amount you can borrow through a HECM or proprietary reverse mortgage is influenced by several critical factors, including:
- Your Age
- The Type of Reverse Mortgage You Choose
- The Appraised Value of Your Home
- Current Interest Rates
- A Comprehensive Financial Assessment Evaluating Your Capability and Willingness to Cover Property Taxes and Homeowner's Insurance.
-
2. Home Equity Conversion Mortgage for Purchase (H4P)List Item 3
Discover the Benefits of H4P: A Unique FHA-Backed HECM Option
The H4P, a specialized Home Equity Conversion Mortgage (HECM) program endorsed by the FHA, empowers senior homebuyers with a convenient solution. It enables you to purchase a brand-new primary residence that perfectly aligns with your lifestyle needs while simultaneously securing a reverse mortgage—all in a single, hassle-free transaction. To qualify for this exceptional opportunity, you'll need the flexibility to use your available cash to bridge the gap between the HECM proceeds and the total costs, including the property's purchase price and associated closing expenses.
If this type of HECM reverse mortgage is available in your local area, it could open doors to various possibilities, such as:
- Building a Customized New Home
- Relocating Closer to Friends and Family
- Purchasing a Residence in a Senior Housing Community
- Downsizing to a More Manageable Home
- Acquiring a Primary Residence Tailored to Your Current Needs
- Moving into a Modern, Accessible Home with Convenient Amenities
Explore the advantages of H4P and make your senior years more comfortable and accommodating.
-
3. The Reverse Line of Credit (LOC)List Item 1
When comparing a conventional Home Equity Line of Credit (HELOC) to a Reverse Mortgage Line of Credit, there's a significant advantage in favor of the latter. Unlike a standard HELOC, which requires monthly payments, does not appreciate, and can be called due by the lender at any time, a reverse mortgage line of credit offers a distinct benefit: it includes a growth feature that applies to any unused funds.
Opting for a reverse mortgage line of credit at the age of 62, as opposed to waiting until 82, and allowing the funds to accumulate over time, can result in a substantial credit line available during later years when it may be most needed. This growth potential sets it apart as a flexible and advantageous financial option.
-
4. The Combination Home Equity Conversion Loan
Your reverse mortgage provider offers you three flexible options for accessing your funds: a lump sum payment, a line of credit, or monthly cash flow payments. These options can be customized to align perfectly with your unique financial goals and preferences. Moreover, should your circumstances evolve over time, you have the flexibility to adjust your disbursement method for a nominal, one-time fee.
You have the freedom to tailor your reverse mortgage to your exact specifications by choosing from a combination of these three distinct loan proceeds options to suit your evolving needs and desires.
New American Funding is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Youngest borrower must be at least 62 years old. Your monthly reverse mortgage advances may affect your eligibility for some other programs. At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to you, and you may need to sell or transfer the property to repay the proceeds of the reverse mortgage with interest from your assets. We will charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which we will add to the balance of the reverse mortgage loan. The balance of the reverse mortgage loan grows over time, and interest will be charged on the outstanding loan balance. You retain title to the property that is the subject of the reverse mortgage until you sell or transfer the property, and you are therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may subject the property to a tax lien or other encumbrance or to possible foreclosure. Interest on reverse mortgage is not deductible to your income tax return until you repay all or part of the reverse mortgage loan. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity.
