Serving the "Entire" Adirondack Park with offices at:
Schroon Lake Region (Main Office): PO 488, 1098 US Route 9, Schroon Lake, NY 12870 * 518.532.7900
High Peaks Region/Auction Sales: 2918 US Route 9, North Hudson, NY 12855 * 518.532.9323
Lake Champlain Region: 25 Munsey Way, Elizabethtown NY 12932 * 518.569.8884
Lake George: 2022 State Route 9, Lake George, NY 12845 * 518.668.2677
North Country Region: 113 Flynn's Line Road, Burke, NY 12917 * 518.483.4538
Speculator Region: Route 30, Speculator, NY 12164 * 518.569.8884
Washington Country Region: 4156 County Route 30, Salem, NY 12865* 518-854-3294
FHA Reverse Mortgages (HECMs)
Reprint of HUD
If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, and are eligible, you may participate in FHA's Home Equity Conversion Mortgage (HECM) program. The HECM is FHA's reverse mortgage program that enables you to withdraw some of the equity in your home with limitations or a single disbursement lump-sum payment at the time of mortgage closing.
You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
How the Program Works
There are many factors to consider before deciding whether a HECM is right for you. To aid in this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs.
There are borrower and property eligibility requirements that must be met. You can use the listing below to see if you qualify. If you meet the eligibility criteria, you can complete a reverse mortgage application by contacting a FHA-approved lender. You can search online for a FHA-approved lender or you can ask the HECM counselor to provide you with a listing. The lender will to discuss other requirements of the HECM program, the loan approval process, and repayment terms.
YOU MUST ....
The following eligible property types must meet all FHA property standards and flood requirements:
For adjustable interest rate mortgages, you can select one of the following payment plans:
For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.
Mortgage Amount Based On
The amount you may borrower will depend on:
You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you.
The HECM loan includes several fees and charges, which includes: 1) mortgage insurance premiums (initial and annual) 2) third party charges 3) origination fee 4) interest and 5) servicing fees. The lender will discuss which fees and charges are mandatory.
You will be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be .5 percent or 2.5 percent, depending on your disbursements. Over the life of the loan, you will be charged an annual MIP that equals 1.25% of the mortgage balance.
Helpful Booklet from National Council of Aging (click here)
FHA Fact Sheet (click here)
AARP Booklet on Reversed Mortgages (click here)
HECM Counselors In, And Around, the Park
Directory accurate as of 6/30/2014