HECM Features & Benefits for Your Senior Clients
- HECM loans require zero principal payments.*
- There’s no minimum credit score requirement, and just a modest residual income factor.
- Flexible terms offer your clients the choice of line of credit, monthly payments, or lump-sum options.
- The HECM credit lines grow over time. The senior home owner has increasing borrowing power.**
- HECM is a non-recourse loan. The borrower cannot owe more than the home’s value at the date of sale.
- The senior borrower always retains title and ownership of the home to pass on to their heirs.
- The HECM loan can be used for a purchase or refinance transaction.
*The borrower is responsible for taxes, insurance, homeowners’ association dues, and maintenance costs.
**Credit line growth rate is equal to the rate of interest and the MIP factor of .5% combined per year.