Making a difference: Mary's story
I vividly remember sitting with Mary, an 82-year-old homeowner, to discuss how an HECM might benefit her. As we talked, it became clear that her struggles extended beyond just financial challenges. Since her husband’s passing, Mary had been living on a single Social Security check, and the financial strain was weighing heavily on her.
With most of her income going toward rising healthcare costs and home expenses, she had little left to enjoy life. She loved her home of 45 years, where she had raised her children and now watched her great-grandchildren play in the yard, but staying in the house was becoming more difficult. Mary was also battling loneliness, as many of her lifelong friends had passed away.
As we talked, I asked if she had considered getting involved at her local senior center. She hesitated, saying, “The people there are too old for me.” I couldn’t help but smile and replied, “That’s exactly why they need you! You could volunteer and make such a difference in their lives — and it would get you out of the house, too.”
I gave her information on local programs, including a service that connects volunteers with homebound seniors. My mother had developed a meaningful friendship through a similar program, and I thought Mary would thrive in it.
Fast forward a few months after Mary decided to move forward with an HECM, she called to thank me for all my help. Not only had the HECM relieved her financial stress, but she had also started volunteering at the senior center. She had made new friends, found a renewed sense of purpose, and was even visiting two homebound seniors each week. Her financial freedom allowed her to consider purchasing a new swing set for her great-grandchildren — a joyful milestone she had long dreamed about.
While I helped Mary alleviate her financial burden with an HECM, what touched me most was seeing her rediscover a sense of purpose and community. This is what drives my passion for this product — helping seniors not just survive but thrive.
Volunteering and staying resourceful are values I hold dear. It not only helps me stay informed about the resources available to my clients, but also provides a platform to raise awareness about HECMs. It’s a way to show that HECM professionals are genuinely dedicated to improving the lives of seniors.
When was the last time you felt the deep satisfaction of making such a meaningful impact?
What are the benefits?
The benefits of an HECM extend far beyond immediate financial relief. Here’s how this powerful tool can transform your clients’ lives:
- Stay in their home — Seniors can remain in the home they love without the burden of monthly mortgage payments.
- Eliminate their current monthly mortgage payment — They still need to cover property taxes, homeowners’ insurance, and maintenance costs, but eliminating the monthly mortgage payment can provide enormous relief.
- Access home equity — Homeowners can finally make their hard-earned equity work for them, using it as a valuable resource during retirement.
- Easier qualification — There’s no FICO score or debt-to-income ratio required for qualifying, which may make it more accessible than traditional mortgage products.
- HECM for Purchase — Seniors can use a HECM to buy a new primary residence, contributing only a portion of the purchase price and freeing up savings for other needs.
Eligibility and requirements
To qualify for an HECM, borrowers must meet several key criteria:
- Age: Borrowers must be at least 62 years old.
- Counseling: The borrower is required to undergo HUD-approved counseling to ensure they fully understand the program.
- Financial Assessment: Lenders perform a financial assessment to determine if the borrower has sufficient income and residual funds to cover ongoing property charges.
- Property Standards: The home must meet FHA property standards, which ensures it’s safe and well-maintained.