Home Equity Conversion Mortgage
By far the most prevalent of the three main options, the Home Equity Conversion Mortgage (HECM, sometimes pronounced heckum; Take a look at some of the main points of an HECM loan:The loan is calculated based on the age of the youngest qualified borrower.
Eligible homes include most single-family, condos, townhouses, and manufactured homes built after 1976 (ask your originator about HUD guidelines and requirements for manufactured homes).
Lending limits (the amount you can borrow, also called the principal) are lower than other options, yet you can often get a higher principal than you would with others because of lower interest rates.
Loans top out at $312,896 in high-home-value areas, $172,632 in lower-home-value areas (based on 2005 county lending limits).
Interest rates can be based on monthly interest adjustments or annual adjustments (you won’t pay anything until the loan is due, it just accumulates).
Your money is easily accessible and payment options are very flexible.
Eligible homes include most single-family, condos, townhouses, and manufactured homes built after 1976 (ask your originator about HUD guidelines and requirements for manufactured homes).
Lending limits (the amount you can borrow, also called the principal) are lower than other options, yet you can often get a higher principal than you would with others because of lower interest rates.
Loans top out at $312,896 in high-home-value areas, $172,632 in lower-home-value areas (based on 2005 county lending limits).
Interest rates can be based on monthly interest adjustments or annual adjustments (you won’t pay anything until the loan is due, it just accumulates).
Your money is easily accessible and payment options are very flexible.
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