Reverse Mortgage Loan

Private loans backed by the companies that develop them.

Federally-insured reverse mortgages backed by the U. S. Department of Housing and Urban Development (HUD). HECM loans enable you to withdraw a portion of your home’s equity and can be used for any purpose. How much you can borrow with a HECM or proprietary reverse mortgage depends on several factors, including:

• your age
• the type of reverse mortgage you select
• the appraised value of your home
• current interest rates, and
• a financial assessment of your willingness and ability to pay property taxes and homeowner’s insurance.

An H4P (a type of HECM backed by the FHA) enables senior homebuyers to purchase a new primary residence that better suits their needs and obtain a reverse mortgage in one transaction. You can use an H4P if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing. This type of HECM reverse mortgage, if it is offered in your area, may allow you to:

• Build a new customized home
• Relocate closer to friends and family members
• Purchase a home in senior housing community
• Downsize to a smaller, easier-to-maintain home
• Purchase a primary residence suitable for your current needs
• Move into a new home that’s easily accessible with modern amenities