Compared to single-purpose loans and traditional home equity loans or lines of credit, HECM (Home Equity Conversion Mortgage) loans are particularly advantageous for the senior borrowers they serve. HECM advantages can be seen in many different scenarios but the 5 HECM advantages listed below are some of the best features of the HECM  loan. HECM loans are reverse mortgages that are FHA-insured and specifically designed for senior homeowners aged 62+ to allow access to the equity in their home or purchase a new home- both with no monthly mortgage payments due. The HECM advantages listed below are just a few of the many reasons reverse mortgages help ensure stability and financial security throughout retirement.

5 HECM Advantages that make HECM Loans a Great Alternative to Traditional Loans

1. Credit requirements for a reverse mortgage are less strict than for standard home equity loans and lines of credit. There are very minimal qualifications for this loan.

2. Available funds from a reverse mortgage line of credit can increase over time, depending upon interest rates and the amount that is borrowed. There is no cap to the line of credit growth and no monthly mortgage payments required on anything that is borrowed.

3. Borrowers (or their heirs) will never repay more than the value of the home, even if the amount of the reverse mortgage is higher than the value of the home.

4. Interest rates are not based on credit history.

5. As long as at least one borrower meets the tax, insurance, FHA/Lender, and residency requirements:

• There is no time limit on how long the loan stays active.
• There are no monthly mortgage payments to make on the HECM.
• Borrowers continue to own their homes and can’t be forced to leave.

When someone is considering a life change such as a home purchase or refinance, it can be overwhelming wading through the plethora of lenders offering their services. Choosing the right partner to guide you is key to your experience. As a brokerage that specializes in reverse mortgages, we offer every reverse mortgage product available from the FHA-insured HECM to the various Jumbo and Proprietary reverse mortgages available today, which you can read more about here: Proprietary Reverse Mortgages. We do not do any other loan types; we focus exclusively on reverse mortgages.  HECM advantages can be seen in many different scenarios and we would be honored to have the opportunity to guide you to a more secure future by utilizing your largest asset. We have the experience, an all-star team of local brokers, and an expert team of in-house reverse mortgage processors to assist with your loan every step of the way. Wondering if you are eligible for a HECM loan? Fill out the form on this page to check! Am I Eligible?