HECM - Home Equity Conversion Mortgage
A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage. Over ninety percent of all reverse mortgages are HECMs. The Federal Housing Administration (FHA) sets limits on how much a HECM reverse mortgage lender may lend you—based on your age, your home's value and location—and what your total loan costs will be. HECM loans give you a wide choice in how you may receive the cash from the reverse mortgage.
For home values under $400,000, HECM products generally provide the larger loan advances than other reverse mortgages. [An exception is the JUMBO Advantage Plan reverse mortgage which may offer cash advance opportunities significantly higher than other reverse mortgage products].
.
Fannie Mae Home Keeper Reverse Mortgage --
A Home Keeper® reverse mortgage is Fannie Mae's conventional market alternative to the Home Equity Conversion Mortgage (HECM). It is a government-sponsored enterprise program and works like a HECM loan in many ways. However, a Home Keeper® reverse mortgage addresses a few needs that are not met by HECM loans, such as individuals with higher property values, condominium owners, and seniors wishing to use a reverse mortgage to purchase a new home.
The current (2007) lending limit with a Home Keeper® reverse mortgage is $417,000.
.
Jumbo Advantage Plan --
The Jumbo Advantage Plan reverse mortgage loan has been designed especially for seniors with substantial home equity or higher valued homes. The Jumbo Advantage Plan has virtually no limit on home value or the amount of the loan. As a result, the amount of money available to the homeowner may be substantially greater with the Jumbo Advantage Plan reverse mortgage loan than with other options,
The Jumbo Advantage Plan features a number of options that allow you to maximize the benefits depending on your unique needs, including eliminating upfront fees and closing costs. In addition, there is no equity or appreciation sharing and no maturity fee.
