HOME EQUITY CONVERSION MORTGAGE (HECM)
What Is a “HECM” Reverse Mortgage Loan?
Specifically designed for homeowners 62 and older, a reverse rortgage is a home loan that allows borrowers to convert a portion of their home equity into cash. Home Equity Conversion Mortgages (HECMs) are the most common type of reverse mortgage. HECMs are the only reverse mortgages insured by the Federal Housing Administration (FHA), and you can only get one through an FHA-approved lender like Fairway and the Kanyur Reverse Team.
Key Benefits
Increased Cash Flow
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You can access cash from a portion of your home equity without incurring income tax* (generally, it won’t affect your Social Security and basic Medicare benefits). You can use the funds how you want.
Flexible Repayments
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You have the option to repay as much or as little of the loan balance each month as you would like, or you can make no monthly mortgages payments at all. Of course, you must still maintain the home and pay homeowners insurance and property taxes, just like a traditional mortgage.
The FHA guarantees no repayment of the loan is required until the last borrower moves out or passes away. When you move out of your home, you or your estate has up to 12 months to repay the loan balance, which is typically achieved by selling the home.
Non-Recourse Feature
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The FHA guarantees that if the balance on the loan exceeds the home value at the time the home is sold, neither you nor your heirs will be responsible for paying the deficit (the FHA will pay it). If there are excess proceeds from the sale of your home, you (or your heirs) would receive them.
- You remain on the title and you own the home
- You can sell your home at any time
- Line of credit growth feature
With a HECM reverse mortgage line of credit, the unused portion of the line of credit grows each month at the same rate as the loan balance. In other words, you’ll have access to even more funds over time, regardless of home value.
Hear How a HECM Changed Kathleen’s Life
After Kathleen Scarcelli’s husband passed, she was in the difficult position of wanting to keep her home but not having enough money to enjoy life with monthly mortgage payments. Her reverse mortgage loan offered life-changing financial freedom.
Rob Kanyur and his team are personable, professional and very good at what they do. Our reverse mortgage went so smoothly. We were kept informed during the whole process which was an amazingly short amount of time! I highly recommend Rob + Fairway.
Rob Kanyur is professional and thorough in his presentation of the benefits of a reverse mortgage. He answered all of our questions so we were fully informed before committing to a reverse mortgage. We are delighted with how a reverse mortgage has served our financial needs. We highly recommend Rob Kanyur and Fairway Independent Mortgage Corporation.
Rob and his team deserve high praise. I was kept in the loop at all times. Any questions were answered promptly and patiently. (I had a lot of them.) Excellent customer service! The team works very efficiently, no hick-ups or delays. Even after closing, Rob was and still is available to help/clarify.I whole-heartedly recommend Rob Kanyur to anyone, who is searching for the best man and team for the job.Heidi S.
My husband and I live in Prescott, AZ. Rob Kanyur's company was highly recommended to us, for good reason. We took out a Reverse Mortgage in 2019 with Rob, and updated it in August 2021 to reflect the increased value of our home and low interest rates. Both transactions were quick and painless and handled professionally by Rob and his excellent team. We highly recommend Ron Kanyur and his team at Fairway Mortgage.
I have worked in and around the real estate business for almost 30 years. I have had the experience of watching numerous mortgage brokers as they provided their services for their clients. During this time I have had specific experience working with several reverse mortgage brokers.When it came time for my wife and I to consider a reverse mortgage, I knew I didn't want one of those brokers I had known in the past. We chose to do our reverse mortgage with Rob after receiving a referral from a mortgage broker friend, who I know to be very competent. She spoke well of Rob, both as a person and as a broker. We soon learned that Rob has expert knowledge of reverse mortgage. He is, by far, the best reverse mortgage broker I have ever had the privilege of knowing.If you are considering a reverse mortgage, Rob is the broker you want to do business with. He and his team will insure that your transaction will be done correctly and in a timely manner.
Common Uses of a Reverse Mortgage
Eliminate Monthly Mortgage Payments
(Borrower must still pay property charges like taxes, insurance and upkeep)
Supplement Cash Flow
Bridge the Medicare Gap From Age 62 to 65
Use as a Standby Line of Credit
Fund Major Expenses, Like In-Home Care or Home Renovations
Did You Know?
You can also use a Reverse Mortgage Loan to BUY a new home that better fits your needs in retirement. This home financing option is called a HECM for Purchase.
Loan Proceeds Are Taken:
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- A lump sum payout
- Fixed monthly advances
- Tenure (life of the loan)
- Term (set period of time)
- A line of credit
- A combination of monthly payments and a line of credit
General Eligibility
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The borrower(s) must:
- Be 62 years or older
- Live in the home as their primary residence and either own the home outright or have significant equity in the home
- Meet minimum credit and property requirements
- Must receive reverse mortgage counseling from a HUD-approved counseling agency
- Must not be delinquent on any federal debts
Eligible Properties
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- Single family residence
- 2- to 4-unit properties
- Manufactured homes
- Modular homes
- Planned unit developments
- Townhomes
- FHA-approved condominiums
Curious About What You May Qualify For?
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*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.