Reverse Mortgages
For Senior Homeowners

If you're a senior citizen and own your home, here's a way to get cash back from the equity in your house. It's called a Home Equity Conversion Mortgage (HECM). This loan can provide you with scheduled monthly payments to help supplement your retirement income, or large lump sums for home improvements or any other purpose. And best of all, you will not have to make any monthly payments! Is an HECM right for you? Please review the details below and/or contact
our office and we'll be happy to provide you with more information. 909-335-7100.

 

The “HECM” Loan.  It’s Money From Home!!

Information For Senior Homeowners About The FHA Home Equity Conversion Mortgage

An HECM Loan Can Let You Use The Equity In Your Home To:

• Eliminate Your House Payment
• Supplement Your Income
• Pay Household and Medical Bills
• Finance A New Car
• Pay For Your Travelers

If you’re a senior citizen and own your home, here’s a way to get cash back from all the equity you’ve built up in the value of your house.

It’s called a Home Equity Conversion Mortgage, or “HECM” for short, also referred to as a Reverse Mortgage.  The HECM is a relatively new type of loan that is government-insured and highly recommended for many senior homeowners.

Upon approval, your HECM loan can be set up to provide cash monthly to help supplement your Social Security and retirement income.  Best of all you won’t have to make any monthly payments for as long as you live in your home.  You can also choose to receive a lump sum cash amount for home improvements or for any other purpose you desire.
Is an HECM loan right for you?  This information is presented to help you find out.  We will put you in touch with a trained counselor who can advise you about the alternatives and options available to you thru this government-supported HECM program. So be sure to make a note of any questions you may have.
If you are eligible for an HECM loan and wish to apply for one, you can count on Viewpoint Financial to point you in the right direction and set you up with the right lender who will deliver prompt, courteous service.  Viewpoint Financial, as a Mortgage Broker, arranges loans for borrowers with appropriate lenders who fund those loans.

How Does An HECM Loan Work?

Think of it as an “advance” on the equity in your home.  An HECM loan puts to use the equity in your home as collateral and pays you in cash from this equity; this may be in one lump sum, regular monthly installments, or a combination of both.
When your home is sold, or when you move out, you or your estate will repay that cash, plus interest, to the lender.  All proceeds in excess of the amount owed belong to you or your estate.

Who Is Eligible?
You must be at least 62 years old and either own your home free and clear, or have just a small balance remaining on your mortgage.  If there is a joint borrower, he or she must be at least 62 years old as well.  You must also agree to a free informational session with a HUD-approved counseling agency before you apply.  This provides an important step toward being sure that an HECM loan is for you.

How Safe Is An HECM Loan?

Once you’ve gone through the information session and application process, you’ll recognize that an HECM loan is the safest mortgage you can get.  You can’t outlive the loan or be obliged to make payments, as long as you remain in your home.  That fact is guaranteed by the U.S. Department of Housing and Urban Development (HUD).

How Much Money Will I Receive?

That depends on your age, the appraised value of your house, the current interest rate, and the number of years you’re likely to live in your home.  You can choose to be paid in a lump sum or in monthly payments.  In either case, the older you are, the more you’ll be able to receive each month. Please see the following table for an example. Keep in mind the maximum claim amounts are adjusted every so often by HUD, so the following is just an example:

Tenure Monthly Payment Plan
The Maximum Claim Amount is the lesser of the appraised value of your house or the maximum principal amount for a one-family residence that can be insured by FHA in your area.  These figures are approximate and assume an interest rate of 6%, financing of closing costs and the initial mortgage insurance premium, and deduction of a $30 monthly service fee.

Are There Fees Or Charges Involved in Getting An HECM?

As with most other mortgage loans, you will have to pay an origination fee, closing costs and a mortgage insurance premium.  Most, if not all, of these fees may be financed and added to your initial loan balance, so you won’t have to pay for them out of pocket.

Will I Have To Pay Anything Else During The Life of My Loan?

Not a penny, as long as you live in your home.  That’s the simple beauty of an HECM loan.  If you should die, or move, or sell your home, then the total outstanding balance on your loan will be due.  HECM loans are usually repaid out of the proceeds from the sale of your home.

How Can I Use The Money I Receive

Any way you wish.  You can establish a line of credit to draw from at any time.  You can get immediate cash for special purposes such as repairs, improvements, unexpected medical expenses, or even to buy a car.  Or you can elect to receive regular monthly payments to help supplement your present income.  An approved FHA insured lender disburses all payments.

Will I Still Have An Estate To Leave To My Heirs?

That depends on how long you live in your home, but the answer is usually “yes”.  When your house is sold, everything left after the loan is repaid will go to your estate.   Or, your heirs may decide to apply for a new mortgage, so that they may keep the home.

How Do I Apply For An HECM Loan?

The best way to get started is to call our office at 909-335-7100 and we will begin the application process then arrange for an HECM loan specialist to review your information.  You will be provided with an easy-to-understand explanation of how your HECM loan might be set up and the name of a HUD-approved counselor near you.
If an HECM loan turns out to be right for you, it can make a big difference in your life.  So call Viewpoint Financial today.

We look forward to helping you with establishing your Reverse Mortgage today.