A Home Equity Conversion Mortgage (HECM) is a type of home loan that lets homeowners aged 62 or over with little or no remaining balance on their mortgage convert their equity into cash. The equity can be paid to the homeowner in a lump sum, in a stream of payments, draws from a line of credit, or a combination of monthly payments and line of credit.
Whatever payment plan you select, you do not have to repay any part of this reverse mortgage until you sell the home, vacate it for another reason, or violate the loan,s terms and conditions. At that time, you pay the loan balance, plus any accrued interest. Any proceeds above that amount go to you or to your estate.
Details: You and any co-borrowers must be at least 62 years old. You must own your home outright - or carry a small mortgage balance. Eligible properties include: a single-family home, a two- to four-unit dwelling, condominium or manufactured type home. All housing types must meet Federal Housing Administration (FHA) guidelines. (Ask your lender if your property qualifies.)
Different Mortgage Loan Types - Home Ownership - Mortgage Solutions There are many different types of mortgages - make sure you do your homework to pick the one that,s right for you! Below is a list of the most commonly used mortgages and a short description of each. You may also think about allowing one of our many qualified loan professionals to assist you in choosing the right loan.