Home Equity Conversion Mortgage
This is a unique loan called a Home Equity Conversion Mortgage or “H.E.C.M.” designed for borrowers 62 years of age and older. It allows you to get equity out of your home in the form of monthly income, an equity line of credit or immediate cash, tax-free, to use for a reason or goal you have, without ever having to make a payment on the loan, as long as you live in your home. *If you do live in your home un l your death, your heir will have the choice to pay to off the loan or sell the home and keep the remaining equity.
Keep the Title
You keep title to your home so you can continue to control your home.
Keep Your Home
You can keep your home in a living trust so you can direct where your assets go.
All income is tax-free so it doesn’t create a tax burden
Life Your Life
Live the life you want to live (traveling, helping familymembers, maintaining your dignity and independence).
Make no payments while living in your home!
No changes to your property taxes
All borrowers on title must be at least 62 years of age or older.
This is a loan that must be repaid. Best efforts have been made to ensure accuracy but no guarantee is expressed or implied. All information is subject to change without notice. Not an offer to extend credit or a commitment to lend.
Ready to get started?
What are my responsibilities?
NO, you retain title to your home!
NOT if you pay the property taxes, insurance, live in the home and do normal maintenance.*
NO, FHA fully insures the loan so that no debt can pass to the heirs above and beyond what the property is worth.
NO, all income is currently income tax-free.
NO, you may use the funds for any reason you choose.
NO, it can have a mortgage balance; however, all liens must be paid off from the loan proceeds and any funds left are eligible to take in a lump sum, monthly income or left in a credit line account to draw as you need it, per the HECM guidelines.
NO, the heirs have up to one year to either refinance what is owed or sell the home, pay off the loan, or keep whatever equity is left.
Ralph C. Morgan
Reverse Mortgage Specialist
Walnut Creek, CA
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