All Reverse Mortgage Company (ARMC) is a HUD Approved Title II Lender offering all available Government Insured Reverse Mortgage Products. The Home Equity Conversion Mortgage (HECM or “Heck-um”) is also known as a “Reverse Mortgage” due to the fact that the loan operates in reverse of a typical mortgage instrument.
In a typical mortgage loan (or forward mortgage), the loan is a falling debt, rising equity loan as the balance decreases with the borrowers’ monthly principal and interest payments. The Reverse Mortgage operates in the exact opposite as the borrower is able to unlock equity in their home, the balance of the debt increases while the equity decreases as the borrowers draw funds from the equity in their property - all while not making monthly repayments.
Reverse mortgages have been in existence since 1961 in the United States and have been offered as an insured product of the Department of Housing and Urban Development through the Federal Housing Administration when it was signed into law by Ronald Reagan in 1988. Currently the lending limits vary by county and range from $200, 160 at the low end to $362,790 in the highest counties. There is currently legislation being proposed known as the FHA Modernization Bill which would raise this limit.
Program Features
- Minimum Age - 62
- Government Insured
- No Income or Employment qualifications
- 2% Mortgage Insurance Premium
- 2% Lender Origination
- Rate Options - Variable & *Fixed Rate
- Loan Amounts Min = $50,000 Max = $362,790 (or less depending on county limit and property appraised value)
- Property Type - Single Family, Condos, 2-4 Unit, Modular & Manufactured
- Proceed Options - Cash Lump Sum, Line of Credit, Monthly Income or Combination
*Fixed Rate HECM requires 100% cash draw at close of escrow.
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