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What is a HECM reverse                                                                                   HECM Has Built in Safeguards to
      mortgage loan?                                                                                           Better Protect Borrowers

      Home Equity Conversion Mortgages (HECMs),                                                                  The United States Department of Housing and
      also known as reverse mortgage loans, help                                                               Urban Development (HUD) has put safeguards
      American homeowners age 62 and older convert                                                             in place to protect borrowers and improve HECM
      a portion of their home equity into tax-free                                                             reverse mortgage loans.
      cash . HECMs are insured by the Federal Housing
      Administration (FHA) and allow seniors more                                                               1   Financial Assessment Recent changes to
      financial security as well as the ability to age in                                                           HECM loans require a thorough evaluation
      place.                                                                                                   of the potential borrower’s ability to meet the
                                                                                                               financial obligations of the loan terms such as the
      1 Consult your tax advisor                                                                               ability to pay for homeowner’s insurance, property
                                                                                                               taxes, and home maintenance.
      How does it work?
                                                                                                                2   Non-borrowing Spouse Loan amounts are
      A reverse mortgage loan allows you to turn some                                                               available to borrowers with a non-borrowing
      of the  equity in your home into cash to improve                                                         spouse under the age of 62 and rules allow the
      your lifestyle. You will continue to live in your                                                        eligible spouses of borrowers who pass away to
      home and retain ownership without monthly                                                                stay in the home without foreclosure as long as
      mortgage payments.The loan balance will be           Common uses of a reverse                            the non-borrowing spouse complies with the loan
      repaid when the last borrower or non-borrowing       mortgage                                            terms.
      spouse has left the home or does not otherwise
      comply with the loan terms. The amount you           The proceeds from a reverse mortgage loan            3   Counseling Before loan approval, potential
      receive is based on the age of the youngest          can be used for almost anything:                         borrowers must complete a counseling
      borrower or eligible non-borrowing spouse,           p     Eliminate monthly mortgage payments 2         session with an FHA-approved

      appraised value of the home, and the current             2 Borrower must continue to pay property taxes,   counselor. The counselor
      interest rates.                                          homeowner’s insurance, and home maintenance costs  will ensure that borrowers
                                                           p   Make retirement savings last longer             understand all of their options
      2 Borrower must continue to pay property taxes,                                                          and are able to decide if a
      homeowner’s insurance, and home maintenance          p    Use a “standby” HECM reverse mortgage          HECM loan is right for them.
      costs.                                                   growing line of credit to preserve
                                                                                                                   Tom Selleck Actor andAmerican
                                                               investment accounts during market                 Advisors Group Paid Spokesperson
                                                               downturns or build a safety net for
                                                               unplanned emergencies, home repairs and
    Qualifications include:                                    healthcare expenses
    p     You must be age 62 or older                      p    Supplement your retirement income with

         (a non-borrowing spouse may be under 62)              monthly payments                                        CALL TODAY
    p     Live in your home (must be principal residence)  p    Use a HECM for Purchase loan to buy a                 to learn more!

    p     The borrower must own the home                       home that better fits your needs

    p                                                      p    Support aging in place expenses, like
        The borrower must meet the financial
        requirements of the HECM program                       caregiving and home modifications
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