Everything You Wanted to Know About HECM Reverse Mortgage
Life after retirement gets very difficult especially due to the financial dependency on their family members. Senior citizens often feel embarrassed to ask monetary assistance from the younger generation leading to a constant feeling of discomfort. Reverse Mortgage Scheme is the perfect solution to this problem. This is a government insured program according to which, a 62 year property owner borrows a large/small sum of monetary assistance from a financial institution against his/her property. This makes the RM borrower financially independent without having to pay the mortgage charges. In fact the lender pays the borrower, a sum amount either in lump sum, line of credit or through monthly installments.
HECM is an abbreviation for Home Equity Conversion Mortgage program which was introduced as a safe plan for Senior Citizens and limited-income groups to get maximum financial security during the later stages of their life. It is the most trustworthy company that offers valuable Reverse Mortgage Programs for Senior Citizens to lead a decent lifestyle by utilizing their home equity without having to leave their primary residence or depend on anyone else financially. HECM reverse mortgage is preferred more than any other Equity Program not only due to its benefits for the Senior citizens but also because it comes with Federal Government Insurance & is advertised for sale exclusively by FDA (Federal Housing Administration) approved financial lenders.
The HECM Reverse Mortgage Program has bagged a lot of positive reviews from their happy customers who feel that they have found a newfound solution to their retirement woes. It has also proved to be crucial for those who have utilized their retirement funds for the treatment of an ailing spouse or on any other emergency. HECM has gained immense popularity for its fruitful features that have constantly attracted customers, let us have a look at a few:
· You get to enjoy monthly income which is tax-free without having to worry about making mortgage payments
· Your home is not owned by the financial institution and can be passed on to the heirs by ending the loan at a later stage
· The proceeds that you obtain through this method is completely yours and can be spent in any way you like for as long as you wish
· You can choose the mode of payment that suits you the best. It can either be a lump sum payment, monthly payments or through the line of credit
· You get an opportunity to choose a safe retirement solution without having to indulge in any kinds of risky investment plans
· You get to live in your primary residence and still avail the benefits of Reverse Mortgage loans
· Minimum eligibility requirements in addition to hassle free & quick loan approval
If you wish to obtain HECM Reverse Mortgage loan, here are a few essential requirements for the same:
· Applicant must be minimum 62 years of age or older
· Must own a property that he/she currently lives in
· It must adhere to all the FDA (Federal Housing Administration) rules & regulations
· The mortgage amount does not cover property maintenance, taxes and insurance charges; hence the applicant must be financially capable of handling these additional costs
· The property must include equity
· Property must be home to a single family occupying only one section of the house
· It must be equipped to deal with flooding & various natural calamities
· All ongoing loans on the property must be cleared before applying for the Reverse Mortgage Loan
Applicant must be capable of paying the HUD counseling fee.
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