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Home Equity Conversion Mortgage (HECM) * |
Fannie Mae HomeKeeperTM * |
Cash Account AdvantageTM * |
| Benefits |
- Designed for seniors ages 62-years or older, a reverse mortgage allows you to access your home equity as an additional source of income.
- Reverse mortgages offer flexibility and peace of mind and may help you stay in your home as long as possible
- There are no restrictions on how you use the funds. You can use the proceeds of a reverse mortgage to pay for medical care, property taxes, or any other living expense
- Proceeds are tax-free, but please consult your tax adviser
- You pay no monthly mortgage payment
- Reverse mortgages are non-recourse loans. You or your heirs or estate cannot owe more than the value of the home
- You keep title to and ownership of the home
- A reverse mortgage should not impact Social Security or Medicare eligibility, but needs-based programs like Supplemental Security Income and Medicaid may be affected. Please consult a trusted adviser
- Several flexible payout options are available, including a monthly payment for life, a lump sum payment or a line of credit to make sure your individual needs are met.
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| Qualifications & Borrowers’ Responsibilities |
- You must be a homeowner aged 62-years old or older
- There are no income qualifications to qualify for a reverse mortgage
- You must complete counseling by an approved counselor
- You must keep property taxes current, maintain homeowners insurance and maintain the home in good condition
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| Repayment |
- You make no monthly mortgage payments
- The mortgage is not repaid until the homeowner moves out permanently (e.g. long term care in a nursing home), sells the home, or passes away.
- There is no prepayment penalty
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| Costs and fees |
- You receive an itemized estimate of closing costs
- Fees can be financed as part of the loan and include:
- Title insurance
- Appraisal
- Origination fee
- FHA mortgage insurance
- Recording fees
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| Maximum Lending Limit |
$362,790 depending on geographic area |
$417,000 |
Virtually no maximum lending limit, but minimum home value of $75,000 |
| Can be used to purchase a home |
No |
Home purchase product available |
Home purchase product available |
| Eligible Home Types |
- Single family,1-4 unit primary residence
- Condominium
- Manufactured homes
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- Single family homes
- Condominiums
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- Single family,1-4 unit primary residence
- Condominium
- NY State Coops
- Manufactured homes
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| Payouts of proceeds |
- Upfront cash
- Line of credit
- Tenure (monthly income as long as the borrower lives)
- Term payment (monthly payment for a set term)
- Combination of above
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- Upfront cash
- Line of credit
- Tenure (monthly income as long as the borrower lives)
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- Upfront cash
- Line of credit, depending on type of Cash Account product used
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