What Does HECM Stand For ? - Z Reverse Mortgage
HECM stands for Home Equity Conversion Mortgage. An HECM reverse mortgage is a loan regulated and insured by the Federal Housing Authority. Because it is government insured, your home will be protected even if your lender goes out of business or if your loan exceeds the value of your home. The loan will not have to be repaid until the house is sold, the owner dies, or the owner no longer uses the house as his primary residence.
HECM stands for Home Equity Conversion Mortgage. An HECM reverse mortgage is a loan regulated and insured by the Federal Housing Authority. Because it is government insured, your home will be protected even if your lender goes out of business or if your loan exceeds the value of your home. The loan will not have to be repaid until the house is sold, the owner dies, or the owner no longer uses the house as his primary residence.
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<strong>HECM</strong> stands for Home Equity<br />
Conversion <strong>Mortgage</strong>. An <strong>HECM</strong><br />
<strong>Reverse</strong> <strong>Mortgage</strong> is a loan regulated<br />
and insured by the Federal Housing<br />
Authority. Because it is government<br />
insured, your home will be protected<br />
even if your lender goes out of<br />
business or if your loan exceeds the<br />
value of your home.<br />
The loan will not have to be repaid until the house is sold, the owner dies,<br />
or the owner no longer uses the house as his primary residence.
Here are Two Examples to Show you How <strong>HECM</strong> for Purchase Works:<br />
The Hartleys are interested in moving to New Mexico, and they found a<br />
home there for $300,000. The Hartleys are both 65 years old and qualify for<br />
a reverse mortgage of $162,600. They only need to make a cash purchase<br />
of $137,400 to move into their new home, and they can now rent out their<br />
first home to supplement their income.<br />
The Pommeroys want to move into a smaller home in a neighboring town in<br />
Illinois. They found a one-floor home that is easier to maintain and moves<br />
them closer to their grandchildren. The home is selling for $200,000. Both<br />
of them are 70 years old and qualify for a reverse mortgage worth<br />
$115,200. They can move into their new home after a cash payment of only<br />
$84,800.
Z <strong>Reverse</strong> <strong>Mortgage</strong>
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