Page 12 - WSAAG052_Your Guide to Reverse Mortgages Booklet

Stronger Safeguards and Protections

HECM loans come with many safeguards for
your financial protection.

Limited Fees First-Year Withdrawal Cap Credit Line Growth
HECM origination fees are regulated HUD established limits on the amount The unused portion of your credit
by the U.S. Department of Housing and of money you can access your first line continues to grow—giving you an
Urban Development (HUD). HECM loan year to help you better balance your incentive to responsibly access
costs may vary among creditors and short- and longer-term financial needs. only the credit you need.
loan types.
Financial Assessment Counseling
Before you can formally apply for a You will receive counseling by an inde-
HECM loan, you will undergo a financial pendent, HUD-approved third-party to
assessment to determine whether a help you explore and address whether
HECM or another financial option can a HECM or another alternative may
best serve you. offer you the best financial solution for
your needs and goals.
No Pre-Payment Penalty
You can choose to repay your HECM Non-Recourse Loan
loan anytime without penalty. When repayment is due, neither you
nor your heirs will ever owe more than
12 your home is worth.