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
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.