Product Overview

Product Overview

About Home Equity Conversion Mortgage

The HECM allows home-owners, ages 62 and better, to convert part of their home
equity into tax-free proceeds. There are no required monthly mortgage payments on a
HECM but the homeowner must continue to pay for property taxes, insurance and any
other required assessments. There is no pre-payment penalty if the consumer ever
chooses to pay the loan back in full. Repayment of the loan can never exceed the
home’s value and the heir’s will never inherit a debt, unless they choose to retain the
home as their own property. The borrower/s always retains title to the home and no
repayment is required until the borrower(s) either permanently leaves the home, fails
to maintain the property or fails to pay the property taxes and insurance.

Because the proceeds are a tax-free loan, there is no effect on Social Security or Medicare benefits. However, income-based programs may view the HECM as an addition cash flow source. Therefore, it is always best to consult an advisor when receiving benefits from an income-based program before pursuing the HECM.

The loan amount of the HECM is based on the age of the youngest borrower, the home value, and current interest rates. Borrowers must attend HUD-certified counseling prior to applying for a HECM loan

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Products We Offer

We offer Fixed and Adjustable rate products to refinance or purchase a
home using the HECM. We currently offer the Mutual of Omaha HomeSafe Jumbo loan.

The HECM for Purchase Program Broken Down

There are several ways to receive the funds from the HECM including:

  • A single lump sum disbursement
  • Equal monthly disbursements for as long as the consumer remains in the home
  • Equal monthly disbursements for a set amount of time according to the consumer’s choosing
  • A line of credit, in which funds are available to be drawn upon whenever the consumer chooses
  • A combination of monthly disbursements and a line of credit
  • We understand the necessity for a fast and smooth closing, especially when it comes to purchases. That’s why we have an exclusive H4P Express process to expedite purchase loans and ensure your closing date is met! To find out more about our quick and easy process, please contact us

Trainings Available

We believe that education is key to becoming successful in the reverse mortgage industry. That’s why we offer weekly webinars for our approved broker partners on various topics ranging from HECM basics, to financial assessment guidelines, how to submit a loan and using the HECM for a purchase loan. To view our current training calendar and register for the webinars, log in under the “resources” tab and select the training calendar.

If you’d like to schedule a customized training for your team, please click the link below and one of our Account Executives will be in touch with you.