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What are the main differences between a HECM reverse mortgage and a proprietary product like Financial Freedoms Cash Account Plan?

April 26, 2017account cash differences financial Freedom hecm main Product proprietary reverse mortgage

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What are the main differences between a HECM reverse mortgage and a proprietary product like Financial Freedoms Cash Account Plan?

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A. In general, the HECM product may offer a higher loan amount for a lower valued home (for example, under $500,000) depending upon the loan amount caps in specific counties/MSAs, the amount of equity in the home, and the age of the borrower. For a higher valued home with significant equity, a senior may be likely to qualify for a larger cash payout through a Cash Account Plan reverse mortgage. Cash Account Plans are not currently available in all states.