The HECM Reverse Mortgage Line of Credit is not the same as a bank HELOC or home equity line of credit, one can be safer than the other.
Below is a brief video link explaining the difference between the two.
A quick summary is that the HECM reverse mortgage line of credit can not be closed if property values drop. The HELOC can be closed, without warning, due to declining property values.
The HECM reverse mortgage line of credit does not close after 10 years, it can stay open for the rest of your life. A HELOC does close after 10 years and the payments go up 40% starting year 11.
There are also other reverse mortgage lines of credit options that are not federally insured FHA HECM’s, rather they are non-HECM’s available with less closing costs and loan amounts up to $4 million. We carry both types of reverse mortgage lines of credit which can fit a variety of family needs and circumstances, and it’s important to note each reverse mortgage line of credit has different guidelines, they are not the same.
Click her to watch the HECM line of credit vs. the bank HELOC video and thanks for your time!
KWKevin WaltonNMLS #245923
10509 Vista Sorrento Parkway Suite 400
San Diego, CA 92121
Phone: (805) 276-1942
C2 Reverse Mortgage Corporation