What is the HECM Saver?

The HECM Saver is a low cost alternative to the HECM Standard Reverse Mortgage. The HECM Saver significantly reduces the upfront Mortgage Insurance Premium (MIP) providing for lower upfront costs.

When is the HECM Saver a better option than the HECM Standard?

While the HECM Saver provides for lower upfront closing costs it does offer a reduced amount when compared to the HECM Standard. Therefore, the ideal borrower is one who is more concerned with closing costs versus the amount of money available to them.

History of the HECM Saver?

Beginning October 4, 2010, homeowners seeking to obtain a FHA Home Equity Conversion Mortgage (HECM) will have the option of reducing their closing costs by selecting HECM Saver as their initial mortgage insurance premium. The HECM Saver differs from the traditional HECM Standard Program in that eligible borrowers 62 and older will be charged significantly lower upfront fees. However, the lower upfront fees do result in less money being made available to the borrower than is available under HECM Standard.

Resources:

Download the HECM Saver Fact sheet

Video from Today Show, mentioning HECM Saver on Money911.