190k views
4 votes
Home Equity Conversion Mortgage (HECM) Reverse Mortgage:

A) Government-Backed Loan for Homeowners Over 65
B) Short-Term Loan for Home Repairs
C) Mortgage for First-Time Homebuyers
D) Loan for Homeowners with Low Credit Scores

User Kouak
by
8.4k points

1 Answer

2 votes

Final answer:

The correct answer is A) Government-Backed Loan for Homeowners Over 65, although the age eligibility for a Home Equity Conversion Mortgage (HECM) Reverse Mortgage is actually for those over 62.

Step-by-step explanation:

A Home Equity Conversion Mortgage (HECM) Reverse Mortgage is a government-backed loan designed for homeowners who are typically 62 years of age or older, not 65 as the question states. This type of mortgage allows them to convert a portion of their home equity into cash. The loan does not require monthly mortgage payments and is repaid when the borrower no longer occupies the home as a primary residence, such as when they sell the house, move out, or pass away.

The correct answer to the question is A) Government-Backed Loan for Homeowners Over 65, with the slight correction that it is actually available to homeowners over the age of 62.

User Afamee
by
8.2k points