What is HECM and how does it work?

What is HECM?

HECM is a type of loan for persons 62 or older. This safe, FHA backed mortgage, allows the buyer to put down a substantial down payment (based on buyers age and purchase price of home) and have no payments other than typical taxes, insurance and HOA dues. In other words, no mortgage payments! HECM loans can only be used for primary residence purchases.

HECM is NOT a Traditional Reverse Mortgage

This is a type of reverse mortgage but does not have many of the undesirable features of a traditional reverse mortgage. By using a HECM loan you can increase your budget for a new home and save your cash for travel, expenses, and more, while not incurring additional monthly costs.

Is a HECM Loan right for you?

If this sounds like a good option for you find out more about this loan and your personal financial situation by contacting a HECM loan specialist and consulting with your financial planner if you have one. In my experience, most financial planners encourage their clients to use this loan tool to better their living situation without increasing their expenses and spending all their cash.

If you do not know a HECM specialist I can recommend a few for you to consult with.