At The Park Place Collective, we believe in helping you make smart, confident financial decisions — especially when it comes to something as important as your home.
If you’re considering a Reverse Mortgage (specifically a Home Equity Conversion Mortgage, or HECM), here’s everything you need to know about how it works:
✅ Age
Borrowers must be 62 years or older.
✅ Homeownership
You must own your home outright or have a low remaining mortgage balance.
✅ Primary Residence
The home must be your primary residence, meaning you live there most of the year.
✅ Property Type
Eligible properties include:
✅ Financial Assessment
While there's no strict income or credit score requirement, lenders will check that you can pay for:
✅ No Federal Debt
You cannot be delinquent on federal debts, like federal income taxes or student loans.
✅ Mandatory Counseling
You’ll need to complete a counseling session with a HUD-approved HECM counselor to fully understand the loan and its responsibilities.
💵 Loan Proceeds
You can choose how you receive your funds:
🔁 Repayment Terms
The loan becomes due when:
🚫 No Monthly Mortgage Payments
As long as you live in the home and meet the loan requirements, you don’t have to make monthly mortgage payments.
🛡️ Non-Recourse Loan
You or your estate will never owe more than the value of the home when the loan is repaid — even if the balance grows larger than the home’s worth.
🏠 FHA-Insured
Reverse mortgages are insured by the Federal Housing Administration (FHA) for your protection and peace of mind.
⚠️ Loan Balance Increases Over Time
Because interest and fees are added to the loan balance, the amount you owe grows over time.
🛠️ Home Maintenance Responsibilities
You must keep your home in good condition throughout the life of the loan.
📄 Property Taxes and Homeowners Insurance
You are required to keep property taxes and homeowners insurance paid and current.
Disclaimer:
These guidelines are intended for general informational purposes and may not reflect the most current updates or specific loan program details.
We highly recommend speaking with a qualified financial advisor or our experienced team at The Park Place Collective for personalized advice based on your unique situation.
We're here to walk you through every step with care, clarity, and no pressure.
Schedule your free, no-obligation consultation today — and take the first step toward greater financial freedom!
📞 619-990-7552
📧 info@parkplacecollective.com
🌐 www.parkplacecollective.com
