New Home Equity Mortgage Available

New Liquidity: The Home Equity Conversion Mortgage
by Howard Bell
RetirementThe Home Equity Conversion Mortgage is a new product created by Congress to provide some liquidity to the struggling home market.
The amount you can borrow depends on age, current interest rates, and the appraised value of your home or FHA’s mortgage limits, whichever is less.
Generally, the more valuable your home is, the older you are and the lower the interest, the more you can borrow.

1. No payments are necessary as long as the house is your principal residence.

2. No need to repay the loan as long as you or one of the borrowers continues to live in the house.

3. You can never owe more than the value of your home at the time you or your heirs sell the home.

4. When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and fees.

5. The rest is yours.

62 or Over and Flush

You can buy a home using a reverse mortgage.

You can purchase a principal residence without a mortgage payment using a Federally Insured Purchase Reverse Mortgage.

For those individuals with cash who want to move closer to family or buy into a senior housing community, its an option. For Realtors, its a market.
The Home Equity Conversion Mortgage is the FHA reverse mortgage program that enables you to withdraw some of the equity in your home. You can use it to buy a primary residence, if you have cash, for the difference between the HECM proceeds and the sales price. If you would like to learn more about it, read more here.
Howard Bell PFP CCRM is the founder/editor of Your Property, featuring over 450 articles on property management, Your Property Path SF, trade talk for the San Francisco real estate industry, Your Property Path News Brief, snap news updates and real estate market info, and Your Property Path Amazon Store. Howard is a property manager in San Francisco and holds a certification in financial planning.
See Howard Bells feature, Get Your Property Rented Faster.

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