The FHA also created another kind of insurance loan called the HECM Saver. This is a loan available to homeowners who want to borrow a smaller amount of equity than the amount available from the HECM Standard loan. This was created to help lower loan closing costs. The loan greatly lowers the upfront Mortgage Insurance Premium that homeowners are required to pay when they receive the standard HECM loan.
The upfront premium is only .01% of the property’s value, this is in comparison to the premium of the standard HECM loan which is at 2%. The HECM Saver loan reduces the amount of risk that the homeowner must take.
If you are interested in the HECM Saver loan, it is necessary that you go through third-party counseling. This ensures that you understand everything about this loan and that you are willing to take on this responsibility.
Reverse Mortgages of Southern California will also be there to answer any questions and address any of your concerns. You can discuss the loan with our financial advisor, who will help you decide if the HECM Saver loan will be your best option. Give us a call and schedule a face to face consultation today.