Compare a HECM Reverse Mortgage versus a traditional Home Equity Line of Credit (HELOC).

The advantages of a HECM Line of Credit are clear.

  Advantage Our HECM
Line of Credit
Traditional HELOC  
  Converts home equity into funds you can easily access as needed. check check  
  Federal Housing Administration (FHA) insured loan* check    
  No required monthly payment on principal and interest.
  • (As with any home-secured loan, the borrower remains responsible for property taxes, homeowners insurance and property maintenance in order for the loan to remain in good standing.)
  • Flexible payment feature: Your clients can opt to pay down the loan at any time if they so choose, or defer repayment. This gives them greater freedom and control in how they manage their monthly expenses.
check    
  If part of your client's loan is held in a line of credit, the unused portion of the line of credit will grow in size each month.1 check    
  The lender cannot cancel or reduce their line of credit, as long as your clients meet their loan obligations. check    
  Non-recourse feature: Your clients can never owe more than the home is worth when the loan is repaid. check    
  No pre-defined loan maturity date: The loan remains in force and no principal and interest payments are required until the borrowers move, pass away or sell the home, as long as they meet their loan obligations. check    
  Your clients can opt to convert the line of credit into a monthly stream of funds at any time in the future, if they choose. check    

1 The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on the loan.

To learn more, please contact me.

Mary Alice Cardenas
Reverse Mortgage Specialist, NMLS #468646
Call 415-233-1007 | mcardenas@reversefunding.com

The empirical results from (our) analysis suggest early establishment of a HECM line of credit in the current interest rate and lending environment consistently provides greater survival rates than those strategies where the line of credit is established after the investment portfolio is exhausted.
— Shaun C. Pfeiffer, Angus Schaal and John Salter, 2014, “HECM Reverse Mortgages: Now or Last Resort?” Journal of Financial Planning 27 (5) 44–51.
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