Compare a HECM Reverse Mortgage versus a traditional Home Equity Line of Credit (HELOC).
The advantages of a HECM Line of Credit are clear.
Line of Credit
|Converts home equity into funds you can easily access as needed.|
|Federal Housing Administration (FHA) insured loan*|
No required monthly payment on principal and interest.
|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|
|The lender cannot cancel or reduce their line of credit, as long as your clients meet their loan obligations.|
|Non-recourse feature: Your clients can never owe more than the home is worth when the loan is repaid.|
|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.|
|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.|
Call me today and see why HECMs are a loan for life.