The Santa Fe Community Housing Trust offers Home Equity Conversion Mortgage (HECM) counseling. If you are 62 years of age and older and have a low loan balance or own your house outright, this federal program, often referred to as a reverse mortgage, can help you eliminate monthly payments on your home and have a monthly stipend for living expenses. There are no income requirements for these loans and no monthly payments are due unless the homeowner no longer continues to live in the home. The HECM program offers numerous loan options, and clients work with the counselor to determine which type will best suit their needs.
For a senior who takes out a reverse mortgage, the home is the only collateral for the loan, which makes it a “self-financing” loan that does not require monthly mortgage payments. There are also multiple ways to tap into the home equity with a reverse mortgage, from creating a personal line of credit to setting up a direct monthly deposit for a period determined by the homeowner(s)—as long as they’re living in the home. To be eligible to apply for such a mortgage, at least one homeowner must be 62 years old.
The total income that an owner can receive through HECM is calculated using a formula that includes the age of the homeowner(s), the interest rate, and the value of the home. The Santa Fe Community Housing Trust is the only organization to offer this much-needed service in Santa Fe and remains one of only two providers of HECM counseling in New Mexico.
For more information about this program see the HUD website, or contact Ron Chavez at (505) 989-3960.
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