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What is the H. E. C. M. ?
What is the HECM Program?
The HECM allows homeowners age 62+ access a portion of their properties equity without the obligation of making a monthly mortgage payment, and always own their home. The HECM is a non recourse loan, meaning that the only financial asset the bank takes into account is the property itself. To qualify for the HECM Program, it is based on the age of the youngest borrower (over the age of 62), the properties value and the current mortgage balance, if there is no mortgage balance the home owner will have more access to the equity within the property. Currently, credit is not an issue, past mortgage history is not taken into account, nor the amount of money in the bank. In rare instances the HECM program has saved homeowners from foreclosure.

Update: In March 2015, the program will start to require people go through a financial assessment check, which will take into account the financial history of a potential borrower and some of the people that are qualified for the program now, will not be able to be approved after.

Who Is Eligible For the HECM Program

To be eligible for the HECM Program, you must be 62 years old or older. In the case of a married couple one of the co-owners must be 62 and the younger spouse is grandfathered into the program.

You may be eligible if you have an outstanding mortgage balance on your home. Single-family homes, qualified condominiums, townhomes, manufactured homes, and 1-4 family owner occupied residences are eligible. The HECM program is only available for owner occupied properties that are the principal residence of the homeowner.

This Sounds Too Good To Be True
We often hear that statement. The truth is, this program has been around for over 25 years, and only started to receive popularity within the past 8 years, with thousands of homeowners accessing its benefits. Since the largest population in the United states the “Baby Boomers” started turning 62 (10,000 people a day) the HECM Program has grown in popularity. The Government has put strict consumer safeguards and guidelines in place to protect homeowners.