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| Different types of Reverse Mortgages have been developed to meet the unique needs of a variety of homeowners. They provide you with the flexibility to use your Reverse Mortgage in a way that works with your individual financial objectives. Your Mortgage Professional will work with you and advise you of your options. |
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HUD/FHA Home Equity Conversion Mortgage (HECM) & Home Equity Conversion Mortgage Saver (HECM Saver)
- Government-insured programs
- Subject to HUD/FHA loan limits for your geographical area
- Adjustable Rate HECM/HECM Saver offers the most flexibility in payout options and typically a lower initial interest rate. Payout options include lump sum, monthly check, line of credit, or a combination of the three.
- Fixed Rate HECM/HECM Saver offers the security of a fixed rate for the life of the loan, but requires a full draw of funds without the monthly payment or line of credit options.
Specific to HECM
- Upfront Mortgage Insurance Premium (MIP) on HECM is 2% of the home’s value or lending limit
- This option gives borrower more money at closing
Specific to HECM Saver
- Upfront Mortgage Insurance Premium (MIP) on HECM Saver is 0% to .05% of the home’s value
- This option gives borrower less money at closing
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