HECM - Reverse Mortgages


HECM Reverse Mortgage - Enhance Your Financial Security


UNLOCK YOUR HOME'S EQUITY:  We understand that you want to transition easily into the retirement lifestyle of your choice. We are here to help you access a portion of your home’s equity and make the most of your retirement years.

A HECM LOAN DEFINED
A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan1 which enables you to access a portion of your home’s equity without having to make monthly mortgage payments.2 If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to:
  • Pay off your existing mortgage2
  • Continue to live in your home and maintain the title2
  • Pay off medical bills, vehicle loans or other debts
  • Improve your monthly cash flow
  • Fund necessary home repairs or renovations
  • Build a “safety net” for unplanned expenses
A FEW OF THE BENEFITS
  • Eliminates your existing monthly mortgage payments2
  • You can stay in your home and maintain the title2
  • Loan proceeds are not taxed as income or otherwise and can be used any way you choose2
  • Heirs inherit any remaining equity after paying off the HECM loan
  • The HECM loan is FHA insured1
  • Repayment is limited to the lesser of the value of your home or the loan balance, provided the home is sold.
1 Federal Housing Administration (FHA) mortgage insurance premiums (MIP) will accrue on your loan balance. You will be charged an initial MIP at closing. The initial MIP will be 2% of the home value not to exceed $13,593. Over the life of the loan, you will be charged an annual MIP that equals .5% of the outstanding mortgage balance.
2 Your current mortgage, if any, must be paid off using the proceeds from your HECM loan. You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
expanded ELIGIBILITY AND OBLIGATIONS
Eligibility
To be eligible for a HECM loan, some key requirements are:
  • The youngest borrower on title must be at least 62 years of age
  • You must live in your home as your primary residence and have sufficient equity
  • Be able to pay off your existing mortgage using the HECM loan proceeds
  • Live in a single family, two to four unit owner-occupied home, townhouse, approved condominium or manufactured home
  • Must meet financial eligibility criteria as established by HUD
Obligations
Once you obtain your HECM loan, you must continue to meet the following conditions to maintain your loan in good standing.
  • Maintain your home according to FHA requirements
  • Continue to pay property taxes and homeowners insurance
  • Continue to own and live in your home as your primary residence






Provident Bank is an approved lender for HUD/FHA, CalHFA, VA, Fannie Mae and Freddie Mac. In authoring this media, Provident Bank Mortgage is not acting on behalf of or at the direction of HUD/Federal Housing Administration, the Federal Government, the Department of Veteran Affairs, Fannie Mae or Freddie Mac. This is not an offer for an extension of credit or a commitment to lend. All applications are subject to borrower and property underwriting approval. Not all applicants will qualify. All loan products and terms are subject to change without notice. Provident Bank Mortgage is a division of Provident Savings Bank, F.S.B., NMLS #449980. The Corporate Office for Provident Bank Mortgage is located at 3756 Central Avenue, Riverside, CA 92506 (951) 686-6060.
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