Federal Housing Administration
Federally Insured Benefit HECM (Reverse Mortgage) Program
You may be eligible to participate in the U.S. Department of Housing and Urban Development (HUD) Home Benefit Program. This HUD program is designed to benefit seniors age 62 and above with their financial needs. There are no minimum income or credit requirements to participate. You may be eligible for this Federally Insured HECM Program from 7th Level Mortgage, LLC.
■ Explanation of Rights and Benefits:
1. Your current mortgage will be paid off. You will no longer have any mortgage payment. Your home is secured by Federal law and you and/or your spouse can stay in your home for the rest of your live(s). In addition, you can still pass your home on to your children and/or beneficiaries.
2. All of your other debts can be paid off immediately. This includes credit cards, auto loans and any other debts you may hold.
3. This federally insured program allows you to receive up to $400,000 in one lump sum payment or as monthly payments for the rest of your life. This money is tax free and it does not affect your Social Security, Medicare or private retirement benefits. There are no restrictions on the use of your money.
■ Limitations and Restrictions:
1. Program funds are authorized by Congress annually. These funds are limited and may not be available in the future.
2. This HUD program is limited to homeowners age 62 and above. Your home must be your primary residence.
3. The amount of money available to you is based on the value of your home and your age.
4. Although your mortgage and other debts are paid off, you still are required to pay your real estate taxes and other conventional payments like utilities for as long as you own your home.
5. You must receive consumer information from a HUD-approved counseling source prior to participating in this program.
Interested in a reverse mortgage in NJ, PA, De and Florida? Ask one of our NJ Reverse Mortgage specialists about our Reverse Mortgage program for seniors. Also known as a HECM (Home Equity Conversion Mortgage) is a financial tool that was created specifically for homeowners 62 or older to allow them to:
- pay off their current mortgage (if they have one) and use any remaining tax-free cash for anything
- gain relief from the stress of monthly bills or increased medical expenses
- allow them to afford and continue to own their own home
- live more comfortably with no monthly mortgage payments
- gain financial flexibility
1. Talk with us, complete the application and counseling
Once you have had an initial interview with one of our associates about your situation we can determine the best course of action and product for you. We will provide you with an initial quote package and a list of HUD approved HECM counselors for you to choose from.
Then you can schedule and complete your initial HUD counseling with an independent third party. The U.S. Department of Housing and Urban Development (HUD) requires that all applicants receive third-party counseling to explain the available options and details of a Reverse Mortgage. We provide you a list of counselors in your area and you pick one from the list. You pay a fee for the counseling session, which typically takes about an hour.
This is a requirement for the loan, just to make sure you are completely informed about the characteristics of the HECM program, its many advantages and the program requirements. As soon as we receive your completed counseling certificate we proceed to Step 2…
2. Loan application sent to you based on the Qoute Package…
An application will be emailed or mailed to you via regular mail. We will help you with the paperwork and assist you in determining the best way to receive your money from your new reverse mortgage. You can choose to receive your money in a…
Lump Sum - Take all your money today.
Term Payments - Equal sum of money for a fixed period of months or years.
Tenure Payments - Like term payments but they do not end until you are no longer occupying the home.
Not exactly sure what option you should choose? Your licensed Reverse Mortgage expert will review your circumstances with you in as much detail as you want. They can help you decide based on your life style, your needs and your dreams for your retirement.
Documents you will need to supply with your application:
- HUD Counseling Certificate
- Copy of your Drivers License and Social Security Card
- Copy of your most recent Tax bill and Homeowners Insurance Policy
- Copy of your deed if you have it available
- Copy of your last mortgage statement (if there is a mortgage on your house)
Once we have your completed loan application and a few simple supporting documents, we will order your appraisal. The appraisal is completed by a HUD approved appraisal in similar fashion to an FHA appraisal, the process can take about 10 days. The typical cost of an Appraisal is $375 to $450 for a single family home. You can put the cost of the appraisal directly on a credit card which gets paid directly to the appraiser. 7th Level Mortgage does not accept direct payment for appraisals.
After the appraisal is complete, the loan moves to the underwriting process where all the documents are reviewed and finalized.
4. Closing and Disbursement
When it’s time for closing, we will come to you with all the final documents to sign… it’s that easy!
Before disbursement there is a period during which you can choose to cancel the transaction. Federal law requires us to wait until we’re sure you haven’t canceled before we disburse your funds. After you get your proceeds, you can use the money to pay off any debts you choose or to spend the money however you like.
For the life of the loan, you will not have to make a monthly mortgage payment to your lender. However, you will remain responsible for the payment of taxes, insurance, and maintenance.
Reverse mortgages become due when the borrower(s) no longer occupies the home. If death of the borrower occurs, the heirs/estate may repay the loan from the sale of the home or refinance the home.