The HECM is the most popular Reverse Mortgage program for Orange County home owners. But what is a HECM? H.E.C.M. is stands for Home Equity Conversion Mortgage. The HECM is the only reverse mortgage that is insured by the federal government.
HECM and HUD
HECM loans are insured by the Federal Housing Administration (FHA), which is a part of the US Department of Housing and Urban Development (HUD). FHA actually comes up with the formula for telling lenders how much tax-free money they can lend Orange County home owners. The formula is based on the properties value, the homeowners age, and current interest rates.
Things for Orange County Seniors to Know About a HECM
HECM Reverse Mortgage borrowers and their heirs are protected from ever owing more than their homes value, which means that no assets other than your home can be used to repay the mortgage debt. Also, you are guaranteed to retain ownership of your home until you actually move out. You are still able to sell or refinance your home whenever you wish.
HECM loans are the lowest cost Reverse Mortgage currently available, and in most cases will also allow for the largest loan amounts.
Why Orange County HomeOwners are turning to Reverse Mortgages
More and more Orange County homeowners are turning to the HECM Reverse Mortgage program because it is a great, safe way to solve problems caused by a very tight financial budget. It is important to have an emergency fund available. Also, this program provides a way for seniors to give money to their heirs while they are still alive so see their heirs benefit from the gift. Helping grand children with college expenses, and even helping with a down payment is a great thing to do. There are also those who just need additional cashflow to cover groceries or maybe evne go on a vacation. The money that comes from a Reverse Mortgage can solve a lot of problems.
It is important to learn as much as possible about the HECM Reverse Mortgage before making a decision on whether to move forward with the loan or not. The first step is to talk to an experienced Orange County Reverse Mortgage Specialist. He should be able to provide multiple loan scenarios based on your goals and budget.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Trust One Mortgage for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
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