Learn more about this alternative financing option at Aventura.
Moving into your perfect home can be daunting when cost concerns are a factor. A Home Equity Conversion Mortgage (HECM) loan can increase your options, and decrease your need for worry, by allowing you to leverage the equity in your home against a monthly payment. We love that it makes Aventura more possible for more people.
What is a HECM loan?
HECM loans are a type of reverse mortgage designed for borrowers who are 62 years of age or older. These loans allow homeowners to borrow money against the value of their current home, or on a home they are purchasing given a substantial down payment. This type of loan is unique compared to a traditional mortgage because you don’t have to pay monthly or even yearly payments toward the loan. HECMs are also backed by the FHA and are the only reverse mortgage option to have this backing.
What are the benefits of a HECM?
With a one-time down payment, a HECM loan can prevent you from ever having to make mortgage payments on your residence, giving you more control of a fixed income in retirement. This down payment can also come from a variety of places – the equity of your current home, personal savings, or gifts you receive.
This means that you can use the equity in your current home to purchase a new home that is better for you. This gives you the opportunity to move closer to family, purchase your dream home, or move to a home that has enhanced accessibility in line with your evolving needs.
Do I qualify?
There are a few qualifications to qualify for a HECM loan, and some of them depend on local regulations. Generally, HECMs are available to people who:
- Have at least one person on the title aged 62 or older.
- Use the loan for a single-family home or FHA approved condo.
- Can afford taxes and insurance on the property, as well as any other associated costs (such as HOA dues and maintenance costs).
- Talk with a Housing and Urban Development approved HECM counselor.
How much do I qualify for?
The amount of money you can receive from an HECM depends on the age of the youngest borrower, the current interest rate, and the value of the property. In general, more money is available when the interest rates are lower and the buyer is older.
How does the loan get repaid?
HECM loans need to be paid off when the house is sold, the last borrower passes away, or the borrower moves out. One of the biggest advantages of a HECM loan is that the borrower, or their heirs, will never have to pay more than the home is worth, regardless of the state of the market or the interest rate.
HECM loans can be a great tool for older homebuyers to move comfortably, and Aventura is the perfect place to take advantage of a HECM. Learn more about HECM loans and how this program could make Aventura a reality for you, as well as get connected to a reverse mortgage specialist here.