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Reverse Mortgage or Home Equity Conversion Mortgage (HECM)

An Home Equity Conversion Mortgage (HECM) is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash.  It allows homeowners to eliminate monthly mortgage payments* and even gain tax-free** funds without losing the title to their home. Unlike a traditional home equity loan or second mortgage, the loan typically does not become due until the borrower sells the home, moves out of the home or passes away. Liberty focuses exclusively on FHA-insured HECM reverse mortgages.

To qualify you must be 62 or older and own a home with sufficient equity that they live in as a primary residence. If you currently have a mortgage, it  can paid off with the reverse mortgage loan proceeds.

Money Benefits:

  • Paying off debts, primarily mortgage and credit cards
  • Home repairs and remodeling
  • Living expenses
  • Travel
  • Health care or long-term care
  • Easing the financial burden on their children
  • Grandchildren’s education
  • Hobbies

Reverse Mortgage FAQ’s

* The borrower(s) must live in their home as their primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.

** The borrower(s) should consult their financial advisor and appropriate government agencies for any effect on taxes or government benefits

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