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Home Equity Conversion Mortgage (HECM) reverse mortgages
A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage. Ninety-five percent of all reverse mortgages are HECMs. The Federal Housing Administration (FHA) sets limits on how much a HECM reverse mortgage lender may lend you—based on your age, your home's value and location—and what your total loan costs will be. HECM loans give you a wide choice in how you may receive the cash from the reverse mortgage. HECM loans generally provide the larger loan advances than other reverse mortgages.
Fannie Mae Home Keeper® Reverse Mortgage
A Home Keeper® reverse mortgage is Fannie Mae's conventional market alternative to the Home Equity Conversion Mortgage (HECM). It is a government-sponsored enterprise program and works like a HECM loan in many ways. However, a Home Keeper® reverse mortgage addresses a few needs that are not met by HECM loans, such as individuals with higher property values, condominium owners, and seniors wishing to use a reverse mortgage to purchase a new home.
The current (2006) lending limit with a Home Keeper® reverse mortgage is $417,000.
Cash Account Advantage
A Cash Account Advantage reverse mortgage provides more cash for senior
homeowners with substantial home equity or higher-valued homes. It offers
several features and options providing seniors with a broad range of choices
to access their home equity. While somewhat similar to home equity loans
offered by banks, the Cash Account Advantage Plan requires no income
qualification. The Initial Advance Limit is a function of the home's value,
borrower's age and prevailing interest rates, and is the maximum amount that
may borrowed under the line of credit. The loan does not mature until the
borrower sells or permanently moves out of the home.
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