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FHA/HECM
(Home Equity Conversion Mortgage)
- Available
for homeowners 62 and older
- Must
be homeowner's principal residence.
- 1-4
family units is acceptable (provided borrower lives in one unit)
- A
monthly service fee is added to the loan
- Counseling
is required by an HUD/FHA approved housing counselor
- Most
flexible reverse mortgage program in the market place.
- Maximum
lending limit: $362,790 to $200,100 depending upon county as
of 1/2006
- Federally
insured
- Adjustable
Rate Loan based on one-year T-Bill plus a margin
- Loan
origination and closing costs can be financed in the loan
- Loan
Proceeds are tax-free
- Allows
Borrower to customize the program to fit their needs
- Benefits
can be received as line of credit, lump sum, monthly payment
or combination as long as one of the borrowers remains in the
home
- Line
of credit balance grows
- Social
Security or Medicare eligibility is not affected. There is some
limitation with SSI or Medicaid/Medical.
- No
debt to the heirs - home stands for debt
- Fee
collected up front is refunded at closing
- No
credit qualification
- No
income qualification
- No
repayment is required until the last surviving borrower moves,
sells or dies.
This
is your money, you can use the funds for whatever you would like.
You
paid for your home---now let it pay you!
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