1. Home Equity Conversion
Mortgage
(An FHA sponsored home loan product insured by HUD )
Terry Cronin of The Kent Group
1S443 Summit Ave., Suite #301
C: 630-207-1524
P: 630-396-7800
F: 630-396-7808
Borrowers should consult financial advisor and appropriate government agencies for any effect on taxes or government benefits.
Make sure your clients understand the features associated with the loan program they choose and the effect of an adjustable rate to their
overall loan cost. Advisor and/or broker/correspondents are independent entities and do not form legal partnership or agency relationships with
Financial Freedom. Information is intended for Mortgage Professionals only, and not intended for distribution to consumers

2. 2
IMPORTANT NOTICE
PLEASE READ BEFORE PROCEEDING
TO THE NEXT PAGE
The accompanying marketing material has
been copyrighted by Financial Freedom
Acquisition LLC, a Subsidiary of OneWest Bank, FSB.
You have been
granted a limited license to utilize this
material in its existing format. You are not
permitted to make any changes to this
material without the prior written consent of
Financial Freedom. The use of this material is
subject to your license agreement and
applicable copyright laws.

3. What is a Reverse Mortgage? 3
• A retirement tool that allows senior homeowners to
convert home equity into tax-free cash
Without
– Leaving their homes
– Having income to qualify
– Being required to make monthly mortgage payments
– Having to repay the loan until last borrower
permanently moves out
• Who can get a Reverse Mortgage
– Senior homeowner, at least 62 years old
– With enough equity in his/her home to qualify

4. How Does This Differ from a Traditional Mortgage Loan? 4
• Does NOT require repayment until
- Last borrower moves out
- Borrower (s) sells the property
- Last borrower passes away
• Borrower may qualify more easily compared to a
traditional loan

5. Features and Benefits 5
• Homeowner retains title to the home, not the lender
• Seniors’ savings are preserved and their cash flow is
increased to use for the cost of living and to enjoy life
• Reverse mortgage proceeds are tax free
• Borrowers are not required to make monthly
mortgage payments
• Virtually no income or credit qualifications are
required
• Senior enjoys financial security and independence

6. Qualifications 6
• Senior homeowner(s) 62 years or older
• Home must be a 1-4 family residence
• Most Condominiums and PUDs are eligible
• Manufactured homes meeting HUD guidelines
• Primary residence
• Mandatory HUD approved counseling

7. Borrower’s Responsibility 7
• Keep property taxes current
• Maintain hazard insurance
• Maintain property in reasonable living condition
• Live in the home as primary residence

8. How Safe is the HECM Reverse Mortgage? 8
• FHA administers the HECM program and guarantees
that borrowers receive their requested loan advance if
the lender defaults
• The borrower(s) will never owe more than the fair
market value of the home upon loan maturity.

9. How is the Loan Amount Calculated? 9
• Appraised home value or the national lending limit
(whichever is less)
• Age of the youngest borrower
• Current interest rate

10. Interest Rates 10
• HECM Variable
- Monthly and annually adjustable options available
based on the One Year CMT index plus a margin
and monthly adjustable options based on the One
Month LIBOR index plus a margin
• HECM Fixed
- Fixed rate for the life of the loan
- Competitive rates offered for loans with 100%
upfront draw
- Single alternate rate for loans other than 100%
upfront draw
.

11. Flexible Payment Options 11
• Reverse mortgage proceeds can be received:
- Monthly
- Lump Sum
- Line of Credit
- OR a combination
• You can change payment plan at any time during the
life of the loan. (a nominal fee will be charged)

12. Come On In…The Process is Easy 12
1. Contact Terry Cronin at 630-207-1524
2. Discuss and review benefit illustration
3. Set up an appointment with a HUD approved housing
counselor
4. Complete application
5. Order FHA appraisal

13. Completing the Process 13
6. If loan is approved, all outstanding conditions must be
cleared
7. Draw loan documents
8. Three day right of rescission
9. Loan funds, documents are recorded and proceeds, if
any, are disbursed as instructed

14. You’ve Paid for Your Home…Now, Let your Home Pay for You! 14
Questions? Comments?