The Home Equity Conversion Mortgage (HECM) loan is by far the most popular type of reverse mortgage.
Why? HECMs provide a host of consumer protections.
A Home Equity Conversion Mortgage (HECM) from Movement Mortgage allows borrowers to convert a portion of their home equity into tax-free cash.* What sets them apart is that they are insured through the Federal Housing Administration (FHA).
This makes HECMs non-recourse loans, which means a HECM borrower or their heirs will never have to pay out of pocket to satisfy the loan. Instead, the sale of the home covers the cost of the loan.
For example, if there is equity left over after the proceeds from the home sale are applied to the HECM, the borrower of their heirs get to keep it.
If the sale of the home does not satisfy the entire loan balance, FHA mortgage insurance covers the difference.
This provides a great deal of peace of mind to many people who want to increase their cash flow, but are worried about the impact of a HECM on their heirs.
More Fun and Financial Security in Retirement
Here’s Why HECMs Are So Versatile
No Monthly Mortgage Payments
Borrowers are not required to make monthly payments on the loan. Instead, they have to keep up with property expenses like taxes, home maintenance and insurance.
Non-Recourse Loans
Borrowers or heirs won’t owe more than the home’s value at the time of sale.
Federally Insured Through the FHA
Guarantees loan proceeds even if the lender goes out of business.
You Choose Your Payout Options
Options include a line of credit where the unused portion grows over time, a lump sum payment, monthly cash flow payments, or a combination.
Financial Flexibility
Can be used to supplement retirement income, cover medical expenses, or pay off existing debts.
Retain Home Ownership
Borrowers retain the title and can stay in their home as long as they meet loan requirements.
Yes, You Can Buy a New Home with a HECM!
This is called the Home Equity Conversion Mortgage for Purchase, or H4P. The H4P can greatly increase home buying power, enabling retirees to buy a home that could otherwise be out of their price range.
The best part? All the HECM features apply to the new home—including the no obligatory monthly payments, federal insurance, and non-recourse protection.
Learn More About a Loan You’ll Love
Learn More About a Loan You’ll Love
Let’s Get Moving
Whether you’d like better cash flow, want to move closer to family or need to make your home accessible, I’m here to help.
*consult a tax/financial professional