Due to increases in home prices, the Department of Housing and Urban Development has increased the Maximum Claim Amount on the Home Equity Conversion Mortgage (HECM) to $1,149,825 for 2024.
The HECM, or reverse mortgage program, is a special loan for borrowers 62 and older which allows them to access a portion of the equity in their primary residence to increase cash flow. After paying off the current mortgage and eliminating the principal and interest portion of the payment, any additional funds can be taken in the form of a lump sum, line of credit, monthly disbursement, or a combination of the above.
HECMs don’t require any monthly mortgage payments. Because the senior will continue to own the property, they will remain responsible for payment of property related charges (taxes, insurance, and HOA dues, if any).
Bay Equity Home Loans offers HECM loans as well as private, or proprietary, reverse mortgages. The proprietary loans have minimum ages as low as 55 and loan sizes up to $4 million (not available in all states).
Reverse mortgages can also be used to purchase a new primary residence without the need to make a monthly mortgage payment.
Your Bay Equity loan officer has access to a dedicated team of reverse mortgage specialists. Call today for more details.
This material is not from HUD or the FHA, and this document is not approved by HUD or by the FHA or any other Federal Agency. Not available in all state. Contact your loan officer for more information.