What Do I Need for My Reverse Mortgage Counseling Session? Reverse mortgage counseling is a requirement of all reverse mortgage loans insured by the Federal Housing Administration. The counseling session is designed to make potential borrowers aware of their options and empower them with the information they need to make smart choices. There are several things you can do in advance of your...
HECM Saver or HELOC
What Are They and What Do You Need to Know For seniors looking to tap into their home’s equity, there are a few different options available in the marketplace today. One of those is a Home Equity Conversion Mortgage (HECM) Saver, and another is a Home Equity Line of Credit (HELOC). The HECM Saver provides many of the same features found in a HELOC—but there are also some differences as well. The...
Fixed Versus Variable Rate Reverse Mortgages
What Are They And When Does Each Make Sense For You? Like all mortgages, borrowers have multiple program options when it comes to reverse mortgages. For the federally-insured Home Equity Conversion Mortgage (HECM), there are two types: fixed and adjustable rate loans. For each product, there are some considerations that come into play when making a choice about which might fit your situation best...
How is a Reverse Mortgage Different From a Forward Mortgage
Forward vs. Reverse Mortgages: Which is Right for You? If you’re not too familiar with the concept of “reverse” mortgages, you might be wondering how these loans differ from traditional or “forward” mortgages. While there are some similarities between the two types of loans, they’re actually quite different in ways that may be very beneficial to senior borrowers. Depending on your current...
HECM for Purchase – How Does It Work?
Using a Reverse Mortgage to Purchase a New Home While a reverse mortgage has traditionally been used as a way to remain in your home, borrowers can also use it to purchase a new primary residence under the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM) program. Released in 2009, the HECM for Purchase Program allows the borrower to use the proceeds of a reverse...