HECM Saver is a new Reverse Mortgage product that was just release by HUD (Department of Housing and Urban Development).
With an extremely low MIP (mortgage insurance premium) of only .01% of the property’s value, the costs of a HECM loan is now at record lows. HECM Standard is currently at 2% of the property value or 2% of the maximum FHA loan limit of $625,500 if the property value is higher.
The great news about the HECM Saver is that lower loan amounts are now available; about 10% – 18% less than that of a HECM Standard. This is good because the lower principal limit decreases the risk to the FHA insurance fund, and the reduction in risk is turned into a benefit to borrowers.
HECM Standard is available for fixed rate and LIBOR-based loans.
Is your property located in Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Maryland, Massachusetts, Michigan, Nevada, Oregon, Texas, Utah, Virginia, or Washington? Our specialists are standing by to help. Contact us now for more information.