WE’RE THE Home Equity Conversion Mortgage COMPANY THAT WILL WORK FOR YOU.
We’ve designed an array of products to offer you more options. Now you can choose the one that best fits your needs for the life you want to live today and in the future.
Our history of HECM innovation uniquely positions us to do more for you.
Here’s where you will find answers to all of your questions on HECM features and choices.
If you’re a homeowner, age 62 or older, find out what a HECM could do for you.
From years of helping homeowners explore their choices, we understand what you value most: flexible solutions, straight talk, and responsive service. That’s exactly what we’ll deliver. We welcome your interest, your inquiries, and, hopefully, your business.
Our management team is comprised of recognized industry leaders who on average have more than 15 years in the Home Equity Conversion Mortgage (HECM) industry. They’re the people who have been behind the industry’s most innovative products.
RMF is an independent, HECM-only company. We don’t have competing corporate priorities or multiple lines of business. We’re not here for any purpose other than to make your lending experience better.
By applying fresh and progressive thinking, we’re delivering new Home Equity Conversion Mortgage (HECM) products as well as traditional HECM offerings. It’s all about giving you more choices that better fit your needs.
AN ADJUSTABLE RATE LOAN THAT HELPS LIMIT YOUR COSTS. AND CONCERNS.
RMF is proud to be the first to offer this FHA-insured, monthly adjustable rate HECM—with a lower maximum interest rate to help protect you against future increases.
Compared to other types of HECM loans, HECM MAX5 offers you:
A limit as to how much your rate can increase during the life of the loan:
– Just 5% over the initial rate
– That’s half the potential increase, as compared to a traditional monthly adjustable rate HECM
Best of all, HECM MAX5 lets you access the same amount of money as a traditional monthly adjustable rate HECM—but may provide greater protection against rising interest rates.
RMF offers a full array of HECM loans, plus the expertise to help you understand and navigate the entire process.
Get greater protection from rising interest rates with HECM Annual.
HECM Annual is a Home Equity Conversion Mortgage where your interest rate adjusts only once a year, with a “lifetime cap” to ensure that your rate will never go up more than 5% over the initial rate. In addition, there’s an “interval cap” that guarantees that your interest rate cannot increase by more than 2% annually.
And to help give you financial flexibility, we offer a choice of payment plans. Decide how you want to receive your money: as a lump sum, monthly income, a line of credit, or a combination of these options. It’s up to you.
HECM Fixed Rate
With an interest rate established at the loan closing, and fixed for the life of the loan, this HECM provides homeowners with peace of mind. You’ll always know exactly how much interest is accruing on your loan. However, with a HECM Fixed Rate, you are required to take all of your money at closing in one lump sum. This may be a desirable choice, if you’re using your HECM to pay off a larger existing mortgage or cover other immediate needs.
HECM Adjustable
The interest rate on this HECM fluctuates on a monthly basis, but it also offers more options for homeowners. You can choose a lump sum draw, line of credit, monthly payment, or a combination of these options. For example, you might choose to take some of your cash up front and put the rest in a line of credit, so it’s available when, and if, you need it. You only accrue interest on the money that you actually take.
HECM For Purchase
This HECM helps you purchase a new home that will better fit your future needs by taking out a loan on that home. Both the purchase and the HECM are handled in one transaction.
The Financing you need for the home you want.
Based on the eligibility requirements described below, any homeowner age 62 or older can apply for a Home Equity Conversion Mortgage (HECM). But a HECM isn’t just about eligibility—it’s also about suitability. We can help you explore your choices, so you can determine what’s right for you.
To be eligible for a HECM, you’ll need to meet requirements set by the federal government:
All borrowers must be age 62 or older (this applies to all co-owners listed on the home’s title).
The home must be your principal residence. And it must meet standards set by the U.S. Department of Housing and Urban Development (HUD) on property type and condition. You can, however, use your HECM to pay for any required repairs in order to meet these standards.
Eligible property types include single-family homes, 2-4 unit properties, manufactured homes, condominiums, and townhouses. Co-ops do not qualify.
Even if you still have a conventional mortgage on your home, you may be eligible for a HECM. It would first be used to pay off the existing mortgage(s), and then any remaining proceeds would be yours. Many homeowners use a HECM just for this purpose, freeing themselves from the burden of monthly mortgage payments.
A Home Equity Conversion Mortgage (HECM) could be a key component to your retirement planning, providing funds now and income for the future—but it’s not the right choice for everyone. We want you to understand the advantages and disadvantages to help you determine if a HECM is right for you. This page is a good place to start.
You continue to live in your home and retain title to it.
You can pay off any existing mortgage on your home, freeing you from that monthly expense.
No monthly mortgage payments are required for as long as you live in the home and continue to meet your obligations to pay your property taxes and homeowners insurance and maintain the property.
Closing costs and ongoing fees, such as the Federal Housing Administration (FHA) Mortgage Insurance Premium (MIP), can be financed with the HECM loan so you pay nothing up front or during the life of the loan.
Loan proceeds are not taxable.
Social Security and Medicare benefits are not affected.
As the borrower, neither you nor your estate will ever owe more than what your home is worth—even if your home decreases in value when it comes time to repay your loan.
If your home increases in value in the future, you may consider refinancing your HECM to access even more cash.
Any remaining equity after the HECM is paid off belongs to you or your heirs.
The loan balance increases over time as interest on the loan and fees accumulate.
As home equity is used, fewer assets are available to leave to your heirs. You can still leave the home to your heirs, but they will have to repay the loan balance. Usually, the loan is paid off by selling the home. However, this can be done using other funds or through a traditional mortgage.
Typically, fees are higher than with a traditional mortgage.
Due to the associated fees, a HECM is not a good option if you plan to move soon.
Eligibility for needs-based government programs, such as Medicaid, may be affected. Consult a benefits specialist.
The loan becomes due when a maturity event occurs, such as the borrower passes away, the home is no longer the borrower’s principal residence, or the borrower vacates the property for more than 12 months due to mental or physical illness.
You’ll find the answers to many common Home Equity Conversion Mortgage (HECM) questions here. Need to know more? Contact us. We’re happy to help.
What are the basic requirements for a HECM?
What if I still owe money on a first or second mortgage?
How can I receive the cash from a HECM?
How is a HECM different from a home equity loan?
Will I be taxed on my HECM proceeds?
Will a HECM affect my government benefits?
Can I use a HECM to purchase a home?
Are interest rates fixed or variable?
What has to be repaid when the loan becomes due?
A HECM is a government-insured reverse mortgage. There are different HECM loans to choose from that offer you options on what interest rate you are charged, how much money you can access, and how you receive your payments.
To be eligible for a HECM, you’ll need to meet the requirements set by the federal government:
All borrowers must be age 62 or older (this applies to all co-owners listed on the home’s title).
The home must be your principal residence. And it must meet standards set by the United States Department of Housing and Urban Development (HUD) on property type and condition. You can, however, use your HECM to pay for any required repairs in order to meet these standards.
Eligible property types include single-family homes, 2-4 unit properties, manufactured homes, condominiums, and townhouses. Co-ops do not qualify.
Existing mortgages will be paid off with the proceeds from the HECM.
The specific amount depends on several factors, including:
Your age
Type of HECM you select
Current interest rates
Appraised value of your home
Federal Housing Administration (FHA) lending limits
HUD also regulates the amount of money that can be withdrawn during the first year of your HECM.
You have a number of choices for how you receive your funds:
Lump sum
Monthly payments (for a fixed length of time or as long as you remain in the home)
Line of credit (take funds when you need them)
A combination of the above
With a home equity loan, you must make monthly payments while you live in the home—with a HECM, you don't. Your HECM balance, including any accrued fees and interest, is repaid only after you permanently leave the home. Plus, with a HECM line of credit, your unused credit line actually grows each month—and the lender cannot “freeze” or reduce the line of credit.
Typically, HECMs are not taxable. Contact your tax advisor for additional details.
The funds from a HECM generally do not affect regular Social Security or Medicare benefits. However, needs-based benefits, such as Medicaid and Supplemental Security Income (SSI), may be impacted. One of our consultants can provide additional general information, but you should contact a tax professional about your particular situation.
Use the proceeds for the things you need and want—paying monthly bills, fixing up your home, paying for prescriptions and health care, making a major purchase, traveling, helping children or grandchildren, planning for the unexpected, and more.
Yes, with the HECM For Purchase loan, qualified homeowners can use their loan proceeds to purchase a home, such as one that better suits their needs physically or geographically. The home purchase and HECM can be handled in one transaction.
HECMs are available with either fixed or variable rates. Fixed Rate HECMs give you the comfort of knowing that your interest rate won’t change.
Yes, refinancing is possible. This option can be to your advantage if your home increases in value, making more cash available.
Most of the fees associated with a HECM—such as an origination fee, closing costs, and a mortgage insurance premium—can be financed with your HECM so there’s no immediate burden to you. The costs are added to the principal and paid along with the interest accrued on the total principal balance when the loan becomes due.
You’ll repay the loan balance, any fees that have been added, and the accrued interest on the total principal balance. Homeowners (or their heirs) usually choose to do this through the sale of the house or other assets. Repaying the HECM through a conventional mortgage is also an option.
The HECM loan must be paid in full when one of the following occurs:
A maturity event occurs, such as the borrower passes away, the home is no longer the borrower’s principal residence, or the borrower vacates the property for more than 12 months due to mental or physical illness.
You fail to pay property taxes or homeowners insurance.
You let the property deteriorate beyond what is considered reasonable wear and tear, and do not correct the problem.
The surviving borrower continues to own and live in the home—and enjoy all the benefits of a HECM.
Welcome to RMF’s online press room. It is a resource for media and others seeking the latest news and information about our company. You can find press releases, a corporate backgrounder and fact sheet, FAQs, photos, and more. This section will be updated regularly, so keep checking back for more from RMF.
