Page 9 - B2BAAG15_Affinity Lending Brochure

REVERSE MORTGAGE LOANS

Home Equity Conversion Mortgage Loans
The Home Equity Conversion Mortgage (HECM) is a Federal Housing Administration (FHA)
reverse mortgage loan that enables borrowers to withdraw some of the equity in their
home. Borrowers have multiple choices of how the funds are withdrawn, including a
fixed monthly amount or a line of credit or a combination of both. They can also use a
HECM to purchase a primary residence if they are able to use cash on hand to pay the
difference between the HECM proceeds and the sales price plus closing costs for the
property being purchased.

Who is eligible for Home Equity Conversion Mortgages (HECMs)?

The Borrower Must at a Minimum: Property types that may be eligible include:
n Be 62 years of age or older n Single-family or 1-4 unit home with one unit
occupied by the borrower
n Own the property outright or have a small
mortgage balance n U.S. HUD-approved condominium

n Occupy the property as your principal residence n Manufactured home that meets FHA requirements

n Not be delinquent on any federal debt

n Participate in a consumer information session given
by a HUD-approved HECM counselor