By: Mark DeBiasio, Executive Vice President – Chief Financial Officer
Simply put, a Home Equity Conversion Mortgage (or HECM) is a financial product that allows homeowners, over the age of 62, to extract equity from their homes in tax-free fashion. HECM’s are only available through FHA approved lenders. HECM’s are loans secured by a first mortgage on the homeowner’s residence with loan proceeds paid out over time or in a lump sum. HECM’s do not create a repayment obligation as long as the homeowner resides in their home and keeps real estate taxes current.