The HECM Program

SOUTH RIVER MORTGAGE

Loan Options

The HECM Program

Don’t fall behind on your finances.
Lighten the load with a HECM.

The Home Equity Conversion Mortgage (HECM) is a federally-insured program created by the Federal Housing Administration. It is the most common type of reverse mortgage with several safeguards in place to ensure you are protected.

Key Product Features

What is a reverse mortgage?

A reverse mortgage is a type of loan that allows homeowners to access their home equity and turn it into cash. A reverse mortgage offers the unique opportunity for a homeowner to use their home equity without incurring a monthly mortgage payment or selling their home.

Why HECM?

Life is easier with a HECM

Income can be reduced or limited in retirement, which may make mortgage payments a greater burden than many homeowners realize. While you are still required to maintain your home, a HECM does not require you to make monthly mortgage payments. You have the freedom to skip a mortgage payment or eliminate mortgage payments entirely, providing additional control over your cash flow.

A Smart Choice.

The below table illustrates what your cash flow could look like with a HECM. When comparing the amount leftover during retirement with a traditional mortgage (in red) and the amount left over with a reverse mortgage (in green), you can see how a HECM can help you manage your monthly expenses and avoid unnecessary financial stress.

Before Retirement During Retirement Retirement with a Reverse Mortgage
Income $4,000 $2,500 $2,500
Monthly Mortgage Payment $2,000 $2,000
*
Groceries $500 $500 $500
Utilities $250 $250 $250
Gas $100 $100 $100
Auto Loan $300 $300 $300
Disposable Income $850 -$650 $1,350

*As with any mortgage, you must continue to make payments for property taxes, insurance, and maintenance, as well as comply with the loan terms.

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Our team of dedicated professionals are available to assist you.