HECM LOC  No monthly mortgage payments from you. *

Borrowers are responsible for paying property taxes, homeowner’s insurance, and for home maintenance.

 HELOCPrincipal and interest must typically be paid monthly.
LOC Growth LOC allows unused line of credit to grow at the same rate the borrower is paying on the used credit, thus the line of credit amount grows. Does not grow. What you signed up for will remain the same.
 LOC Growth  Guaranteed for 150 yrs from youngest Borrower DOB  Must reappraise and re-write to increase the credit line value
Due Date Typically when the last borrower leaves the home, or does not pay taxes and insurance, or otherwise does not comply with loan terms. Typically due at the end of 10 years.
Pre-Payment Penalty No penalty. Usually has penalty.
Government Insured? Yes, by the Federal Housing Administration (FHA). The FHA Insurance protects the financial interests of the Borrower, not the Lender. Not insured by the FHA. Does not have ANY “Borrower safety” features.
Annual Fee No fee to keep the loan open. Annual fee to keep the loan open.
* ALL Borrowers must continue to pay property taxes, homeowner’s insurance, and home maintenance, as well as comply with loan terms REGARDLESS whether it’s a Bank or FHA loan program.
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