Reverse Mortgage Loan Options
The most popular, and one offered through Tidewater Home Funding, is the FHA-backed Home Equity Conversion Mortgage (HECM). A HECM is a non-recourse loan where borrowers will never owe more than the value of the property. A HECM loan may be used on a homeowner’s existing home or on the purchase of a new home. The borrower must pay required taxes, insurance, and if applicable, HOA for all loan options. Additional Reverse mortgage programs include:
Payment of Loan Proceeds: The borrower receives the loan money as a line of credit, monthly installments, a combination or both, a lump sum, or the payment retires an existing mortgage.
Interest Rate: The borrower chooses between a Fixed-Rate or an Adjustable-Rate Mortgage (ARM) loan program. A Fixed-Rate program is only available with the lump sum payment option.
Purchase: Allows the borrower to purchase a principal residence and requires less upfront investment than an all-cash purchase.
Refinance: Allows the borrower to convert one HECM loan into another HECM loan which is usually done to lock in a lower interest rate or to borrower more cash if the home has increased in value.