There Are Several Different Reverse Mortgage Products

Financial Freedom's Suite of HECM
Fannie Mae HomeKeeper Reverse Mortgage
Financial Freedom Cash Account Advantage Plan

HECM - The Home Equity Conversion Mortgage (HECM) is the only Reverse Mortgage insured by the Federal Government. HECM Loans are insured by the Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban Development (HUD). FHA tells HECM Lenders how much they can loan you and also limits the loan costs. FHA also guarantees that Lenders will meet their obligations.

This program provides four different draw options:

1) LUMP SUM CASH
2) LINE OF CREDIT
3) MONTHLY INCOME for life or for a fixed term, or
4) COMBINATION, that you can change at any time..
5) ANY WAY YOU DESIRE to access your money

HECM PROGRAM

• Maximum Lending Limit - ranges from $172,632 to $362,790, depending on where the Borrower is located.
• FHA Insured Program.
• Variable T-Bill interest rate plus margin is adjusted monthly or annually.
• Available balance in Line of Credit grows tax-free.
• Monthly servicing fee is added to the loan balance.
• Counseling is required by an approved HUD counselor.

Home Keeper (FNMA) - Fannie Mae's proprietary Reverse Mortgage product is also designed to benefit the homeowner's 62 years of age or older. The Home Keeper program does slightly differ from the more popular, HECM program. Product guidelines are as follows:

• Maximum Lending Limit $417,000 (adjusts annually).
• Government Sponsored Enterprise Program.
• Variable CD interest rate plus margin of 3.40 is adjusted monthly.
• A monthly servicing fee is added to the loan balance.
• Counseling is required by an approved HUD counselor.
• NO Mortgage Insurance Premium (MIP) charged.
• Line of credit has NO growth rate.

Cash Account (offered by some Lenders) - This cash account program offers a broad range of options to access equity for higher home values.

• No maximum home value or loan limit with some Lenders/limited with others.
• Follows same eligible home guidelines as HECM and Home Keeper programs.
• Servicing fee is automatically financed on the account monthly.
• Counseling is also required on this program by an independent counselor.
• Minimum home value is $75,000.
• This program is NOT available in all states. 
• Credit Line option at 5% fixed growth.