Senior Equity Reverse Mortgage^® The most popular type of reverse mortgage.

Insured by the Federal Housing Administration (FHA), a Home Equity Conversion Mortgage (HECM) is the oldest and most recognized type of reverse mortgage.

To help determine if a HECM is an option for you, ask yourself the following questions:

• Is your home value within the FHA national lending limit¹?
• Are you interested in the flexibility of an adjustable interest rate or the stability of a fixed interest rate?
• Do you want the choice of a fixed or adjustable interest rate?
• Would you like to access additional funds each month?
• Do you want regular cash installments for the life of the loan, not for just a fixed number of months?
• Is your home a manufactured home?

If you answered yes to most of these questions, a Home Equity Conversion Mortgage (HECM) may meet your needs.

You can have confidence knowing you have a choice between a fixed or adjustable interest rate. With a fixed rate that will not change during the course of the loan. The adjustable rate, which is an open-end credit loan, gives you the flexibility to pay down your balance and redraw funds.

Does your home no longer suit your needs?

If you've considered buying a home or moving closer to family, the Home Equity Conversion Mortgage (HECM) for Purchase Program could help. By making a down payment and applying the proceeds from your reverse mortgage toward the home purchase, you can enjoy your new home without making any monthly reverse mortgage payments.

How the home-purchase program works:

• Find a new home (an eligible property as defined by HUD, not a second home or investment property).
• We will determine the amount of available proceeds you are eligible to receive based on several factors, including the appraised value of your home and the national loan limit.
• You will need to make a minimum down payment and apply the proceeds from your reverse mortgage at the time of purchase. This down payment is determined by the home value minus the amount of proceeds received from the reverse mortgage (after subtracting loan costs).
• You can stay in the comfort of your home without making any monthly reverse mortgage payments. However, you will need to continue paying real-estate taxes and maintain an acceptable amount of property insurance, including flood insurance where necessary.

One more detail about a HECM

With a HECM, you may be able to access additional funds each month with the principal limit increase feature. Once the outstanding balance equals the loan limit, no further withdrawals can be made.

How our principal limit increase feature works:

Principal Limit Increase = [(Current loan interest rate + mortgage insurance premium)/12) x (Current principal limit)]

Consider this example³:

Hazel's home is paid for and worth $200,000. With a HECM, she is eligible to receive $100,000. She decides to not withdraw any funds in the first month. Her increase is $667, calculated as:

(7.5% + 0.5%) / 12 x ($100,000)

At the end of the first month, she has $100,667 available to draw: $100,000 plus the $667 principle limit increase.