Your Options

Home Equity Conversion Mortgage (HECM)

If you are 62 years of age or older, a Home Equity Conversion Mortgage (HECM), commonly referred to as a reverse mortgage, can make it easier and more affordable to buy a home that better suits your lifestyle, without having to take on monthly mortgage payments.* (Of course, you’ll still be responsible for paying property taxes and the required homeowners’ insurance.) Currently, Certainty Home Loans offers HECM financing in Alabama, Colorado, Florida, Georgia, Kansas, North Carolina, Oklahoma, South Carolina and Texas, 

A HECM can be used to purchase or refinance an owner-occupied home, giving you more options to:

  • Remodel or renovate your home to help you age-in-place more comfortably
  • Move closer to family, relatives or friends
  • Move to an active adult community
  • Consolidate debt to provide a more comfortable retirement
  • Plan for Long Term Care by using the Equity Line feature to build wealth
  • Help pay for in-home care
Highlights of a Home Equity Conversion Mortgage

HECMs are regulated by the U.S. Department of Housing and Urban Development (HUD) and insured by FHA.  Most of the negativity surrounding reverse mortgages stemmed from certain practices in the 1980s by small Community Banks.  These practices made the product unsafe for seniors and their heirs and the program was not regulated by HUD.  Since then, the reverse mortgage has become one of the most heavily regulated mortgage products available on the market.  Safeguards are now in place to prevent predatory lending, protect spouses less than 62, and protect heirs from inheriting any debt.

A reverse mortgage does not require you to give up ownership of your home. As the borrower, your name remains on the title and the home is still yours—just as it would be with any mortgage. You’re still required to make timely payments towards real estate taxes, homeowner’s insurance and HOA (if applicable).  And, you must also continue to maintain your home. Once you no longer live in the home as your primary residence, the loan balance, including interest and fees, must be repaid.* Repayment is usually handled through the sale of the home by the homeowner, the estate (or heirs) or the lender.

A reverse mortgage can be used as part of your financial retirement plan. With newer loan options that reduce up-front costs, reverse mortgages have become more versatile in recent years. Many homeowners age 62 and older are now using a reverse mortgage strategically as part of a sound financial plan. For example, a reverse mortgage line of credit can serve as a cash reserve that you can tap into as needed. (And unlike a traditional Home Equity Line of Credit, the unused reverse mortgage credit line actually grows over time.) Or, monthly advances can help you supplement other retirement income, so you can avoid withdrawing savings or liquidating invested assets. While you must continue to meet loan obligations such as taxes and insurance*, no monthly mortgage payments are required, which can improve your cash flow and help you live more comfortably. A Certainty Home Loans Reverse Mortgage Professional will be pleased to work with you and your financial advisor to develop a solution that’s right for you.

*Failure to maintain loan obligations will require the loan to be repaid.

There are few restrictions on how you can use the money from a reverse mortgage. How you use your reverse mortgage proceeds is up to you. Among the most common uses are paying off an existing mortgage or other debt in order to eliminate monthly debt payments; creating a cash reserve; supplementing monthly income; paying for home improvements; or covering medical bills or long-term care expenses.

You or your heirs will never owe more than the value of your home when the loan becomes due. A HECM (Home Equity Conversion Mortgage) reverse mortgage is insured by the Federal Housing Administration. This insurance feature guarantees that you will never owe more than the value of your home when the loan becomes due. No debt will be left to your heirs. And if the loan balance is less than the market value of the home, the additional equity is retained by the homeowner/heirs (if the home is sold).

You are required to receive reverse mortgage counseling from a third-party counselor before application. With most financial products, there are a number of factors to consider before you can choose what’s best for you. You can rely on your Certainty Home Loans Reverse Mortgage Professional to be a trusted resource for clear information and responsible guidance. In addition, before you apply for a FHA-insured Home Equity Conversion Mortgage, you are required to receive reverse mortgage counseling from a third-party counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD). These independent counselors are not affiliated with Certainty Home Loans and their only job is to ensure you fully understand every aspect of your reverse mortgage.