A Reverse Mortgage is a special type of loan that enables
senior homeowner 62 years or older, to convert a portion of their home equity into cash. Proceeds can be in the form of a lump sum, a line-of-credit, or a monthly income. The
homeowner does not make monthly payments and any borrowed funds are not repaid until the home is sold, vacated or upon
the passing of the last surviving borrower.
Title to the property remains in the name of the homeowner.
HECM (Home Equity Conversion Mortgage)
This program is the most popular and is backed by the U.S. Department of Housing and Urban Development
(HUD) and insured by FHA. The current maximum lending limits range from
$200,160 to $625,500 depending upon the County in which the home is located.
HECM for
Purchase
This programs was designed to allow seniors to purchase a new principal
residence using a combination of the proceeds from a Reverse Mortgage and cash
out of their pockets. The program was also designed to
enable senior homeowners to relocate to other geographical areas to be closer to
family members or downsize to homes that meet their needs.
CA Dept. of Real
Estate, Real Estate Broker Lic # 01346804
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2002 - 2009 Reverse Mortgages of California Inc. All rights reserved.
HECM (Home Equity Conversion Mortgage)
