What is a 62+ loan?

If you are a senior looking to use the equity in your home for income, you may have wondered, what is a 62+ loan? We are here to help you learn more about mortgages, 62+ loans, reverse mortgages, and how to decide whether or not you need one.

What is a 62+ loan? Before learning more, enter your ZIP code above, and we will help you find an affordable loan that fits your needs.

What is a 62+ loan?

A 62+ loan, also commonly called a Home Equity Conversion Mortgage (HECM), is a specialized reverse mortgage for individuals over the age of 62.

The Federal Housing Administration federally backs these loans. One of the biggest benefits of HECM loans is that it offers a flexible repayment plan.

On the contrary, HECM loans give you a plethora of repayment options and payout options.

To provide additional protection for senior borrowers, 62+ loans offer a non-recourse feature. This means that individuals will not run the risk of their debt growing to be higher than the actual worth of their homes.

What is a reverse mortgage loan?

What is a reverse mortgage? It is very much what the name implies. However, rather than a monthly payment made to pay off your loan, the loan company takes your home equity and uses it to pay you.

Some of the most common uses for a reverse mortgage are:

• Retirement income supplements
• Home renovations
• Paying for outstanding debts

What are the requirements to qualify for a HECM?

Not just anyone can get a HECM loan. Because the federal government backs the loan, you and your existing property must meet a set of requirements.

• You must meet the age requirement; i.e., be at least 62
• Your current home must be entirely or almost entirely paid off
• You must live in your current home
• Be in financial good standing with the federal government

In addition, before you can take a HECM, you need to attend specialized training given by an approved HECM counselor.

Your home also has to meet certain standards before you can get a 62+ loan on it.

• The home must be either; a single-family or 1-4 unit home
• Must be approved by the U.S. Department of House and Urban Development (HUD)
• Must meet Federal Housing Administration requirements

After reading our 62 loan review, do you think you would be a good fit? If not, it’s important to keep looking for the right mortgage for you, and we can help with that.

Now that you can answer the question, what is a 62+ loan, enter your ZIP code below, and we will make it easy for you to find a loan that will meet your needs and budget.