Mortgage Revived » loans http://mortgagerevived.com Sun, 05 Sep 2010 19:47:28 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 Reverse Mortgage http://mortgagerevived.com/reverse-mortgage/reverse-mortgage http://mortgagerevived.com/reverse-mortgage/reverse-mortgage#comments Fri, 02 Jan 2009 20:18:32 +0000 admin http://mortgagerevived.com/?p=18 Too many HECM loans or reverse mortgage appears to be a mystery. Whether it is the belief that this loan will take away a senior’s home or borrowers will owe more than their home at the end of the loan, there seem to be several reasons why so many stay away from the HECM or reverse loan. If you’re interested in the truth of this type of loan, you’ll need to read this.

First we should define what an HECM loan stands for. HECM stands for Home Equity Conversion Mortgage. It’s also commonly referred to as a reverse mortgage or reverse loan. This allows homeowners to take some of the equity in their home and use it for other purposes. The homeowner is permitted to opt how they wish to receive their funds. They can opt a monthly payment, a line of credit or some combination of both of these methods.

With the economy’s current situation, there’s only one provider of this type of loan and that’s the FHA or Federal Housing Administration. With so many protection policies that are in place on these FHA loans, seniors can be assured that they’re in good hands. In fact one policy is that a borrower is required to meet with a certified counselor so that the borrower can feel comfortable to ask any questions.

The counselor isn’t affiliated with the loan officer or loan company so there’s no conflict of interest. To take advantage of an HECM loan you must be 62 or older. These loans are very different than a traditional loan in that the borrower is not required to pay back the loan while they are living in the home. The loan only has to be paid back when the homeowner leaves the home or when that homeowner dies.

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