Qualifying American homeowners aged 62 and older may benefit from a Home Equity Conversion Mortgage (HECM), commonly called a reverse mortgage.
Though usually touted as a subsidy to retirement savings, the most underrated feature of the HECM is its flexibility.
For instance, reverse mortgages offer a way for seniors to buy a new primary residence.
For many, reverse mortgages offer a more “relaxed” qualification, making closing smoother.* A reverse mortgage can significantly increase a cash buyers' purchasing power, or may allow others to buy a larger home with more desirable amenities.
A reverse mortgage does not require monthly mortgage payments as long as at least one borrower remains in the in the home as a primary residence and complies with the terms of the closing agreements.
Seniors continue to own the property and are responsible for payment of property taxes, insurance, and any HOA dues.
*This material is not from HUD or the FHA, and this document is not approved by HUD or by the FHA or any other Federal Agency. Not available in all state. Contact your loan officer for more information.