How a homeowner can set up an emergency fund for themselves and their family. There is an emergency fund can increase every month in more funds to use either now or in the future, without you having to contribute toward it, and can stay open for usage the rest of your life and doesn’t get frozen if the value of your home drops in value. In inflationary times where our dollar is buying less of almost everything, this emergency fund is quite valuable. Would this be of interest to you?
If you are over the age of 62 and have ample equity in your home, you may be eligible for this emergency fund. If you don’t already know, I’m talking about an FHA HECM reverse mortgage line of credit.
There is no other line of credit or emergency fund out there like it. Yes, the reverse mortgage has a checkered history, but with the changes made on the loan in the past 10 years, it deserves a second look.
Home equity in America is at an all-time high in 2022, but why haven’t more homeowner’s who have ample equity, not taken advantage of the reverse mortgage in the form of a stand-by line of credit emergency fund?
Some people opt to get a bank HELOC instead however this emergency fund isn’t as reliable as a HECM reverse mortgage line of credit due to the fact that it’s accessible for only 10 years, and the bank can permanently freeze access to the funds if home values drop. Income qualifying for a HELOC and making required monthly payments can be a challenge when income funds are limited. The HECM reverse mortgage doesn’t require monthly mortgage payments and income qualifying is much easier. I have a video doing a more in-depth comparison on the HELOC vs a HECM line of credit. I also have a video explaining how income qualifying is easier on the HECM reverse mortgage.
Having an emergency fund is critical in these times and access to the funds should have the least strings attached and be there when you need it most. The HECM reverse mortgage line of credit deserves a second look and needs to be added to the emergency fund list of choices. Feel free to visit my website to and try my reverse mortgage calculator and if you have any questions or concerns, feel free to fill out the contact form below with your scenario.
Best,
KW