At the end of the Flex Payment Mortgage loan term, some or all of the property’s equity won’t belong to the borrower, and they may need to sell or transfer the property to repay the proceeds of the Flex Payment Mortgage. Guild will add the applicable Flex Payment Mortgage origination fee, mortgage insurance premium, closing costs, or servicing fees to the balance of the loan which will grow, along with the interest, over time. Interest isn’t tax deductible until all or part of the loan is repaid. Failing to pay property taxes, insurance, and maintenance might subject the property tax lien, foreclosure, or other rights that are defined in the Mortgage. Insurance is required to have a mortgage, and if there is a gap in coverage then Guild may need to force place insurance.

These materials are not from HUD or FHA and were not approved by HUD or a government agency. A Flex Payment Mortgage is a mortgage loan against a home’s equity. Flex Payment Mortgage’s are Guild’s suite of a reverse mortgage products. HECMs are federally insured by the FHA. Borrower must maintain home as principal residence, pay all taxed, insurance, maintain the home, and comply with all other loan terms. Fixed-rate and adjustable-rate Home Equity Conversion Mortgages (HECMs) are insured by the Federal Housing Administration (FHA). Fixed-rate loans are distributed in a single lump sum with no future draws. Adjustable-rate mortgages offer five payment options and allow for future draws. The age of the youngest borrower determines the amount of the funds available that can be received during the first 12-month period, subject to an initial disbursement limit. In some states, only one borrower must be at least 62 years old. The state of Texas requires that both borrowers are over the age of 62. Not available in the state of Massachusetts.