You may qualify for a
Are the three most popular reverse mortgage loans offered today.
1. Home Equity Conversion Mortgage (HECM)
The HECM is insured by the Federal Housing Administration (FHA) a division of U.S. Department of Housing and Urban Development (HUD) and usually provides the largest loan advances of any of the reverse mortgage loans on the market today. The HECM provides the most choices on proceed dispersement and account for nearly 90% of all reverse mortgage loans originated in the United States.
All borrowers are required to complete third party counseling. American Association of Retired Persons (AARP) in conjunction with HUD have implemented a counselor training program. By calling AARP toll free number, 800-209-8085 a free of charge counselor can be done by telephone. You may also schedule an appoint for an in person appointment at one of their offices.
The money you receive from a HECM loan can be used for any purpose. The maximum loan amount on HECM loans varies by the county where your property is located and the borrowers age. To qualify a borrower must be at least 62 years or older.
You have the option of receiving your tax free loan proceeds from a HECM loan in several ways:
With the HECM loan, if you choose a line of credit as one of your loan proceed choices. The unused portion of your credit line will earn interest allowing your available funds to increase over time. Your rate will be equal to the loan's effective interest rate.
The U.S. Government has imposed a standard through on fees and charges in order to protect Senior Citizens. All fees and costs are disclosed upfron as required by HUD and FHA guidelines.
2. HomeKeeper by Fannie Mae
Fannie Mae (FNMA) proprietary mortgage product "HomeKeeper" program, is designed to benefit the financial needs of seniors 62 years or older. Seniors must also attend a counseling session by an approved third party. The maximum loan amount nationwide for the HomeKeeper is $417,000.
The loan proceeds from the HomeKeeper reverse mortgage are non-taxable and can be used for any purpose. You or your heirs can never owe more than the value of your home at the time the loan is repaid.
You have the option of receiving your tax free loan proceeds in the following ways:
The Fannie Mae HomeKeeper reverse mortgage does not allow for any growth rate on the line of credit option. There is also no mortgage insurance premium charge on the HomeKeeper loan.
3. Financial Freedom Cash Account
The Financial Freedom Cash Account is primarily designed for higher value homes. There is no maximum loan limit or home value on this reverse mortgage loans product. The borrower(s) must be 62 years or older to access the Cash Account reverse mortgage. Third party counseling is required. The minimum home value is $75,000.
You may receive your tax free Cash Account proceeds in the following ways: