Types of Reverse Mortgages

TYPES OF REVERSE MORTGAGES

We offer three major Reverse Mortgage programs...the government-insured HUD/FHA Home Equity Conversion Mortgage Program (HECM), the Home Keeper product by Fannie Mae, and The Financial Freedom Cash Account Plan from Financial Freedom Senior Funding Corporation. Additionally there are other reverse mortgage programs offered by many local and some state government agencies and a few specialized programs offered by some State's housing finance agencies.

HUD/FHA Home Equity Conversion Mortgage Program (HECM): This is the only reverse mortgage program insured by the federal government. HECM loans are insured by the FHA (Federal Housing Administration). The FHA tells HECM lenders how much they can lend you, based on your age and home value. The HECM program limits your loan costs, and the FHA guarantees that lenders will meet their obligations.

HECM's provide the most flexibility in how the cash can be paid to you.

Fannie Mae's Home Keeper: The Home Keeper Reverse Mortgage is Fannie Mae's proprietary reverse mortgage product. It is similar to the HECM with the exception the loan is not insured by the federal government and the payment plans are a little limited.

Financial Freedom's Financial Freedom Cash Account Plan: The Cash Account plan is not federally insured but provides increased benefits for higher valued property.

The right plan for you is a function of your financial needs, the value of your home, and a variety of other factors. We can discuss the points of each offering and help you choose the one that is right for you.