1. HOME EQUITY CONVERSION MORTGAGES Bobby Donaldson www.bobbydonaldson.com 980-722-5487

2. TO HELP SENIORS STAY IN THEIR HOMES To qualify, you must be a least 62 years old, own your home as your primary residence and have equity in it. A HECM allows you to access a portion of the equity in your home tax free and without ever making another mortgage payment as long as you live in your home. Almost too good to be true.

3. ADVANTAGES OF A HECM You continue to own your home and the equity in it. You and your spouse can stay in your home as long as you wish. There are no prepayment penalties if you ever decide to move. The HECM is a non-recourse loan. There is no liability to you, your family or your estate.

4. YOUR HOME FOR LIFE FHA administers the HECM (Home Equity Conversion Mortgage) program and guarantees these loans, for the borrowers and lenders. Since there are no required mortgage payments, you can never lose your home as long as you pay the property taxes, homeowners insurance and live in the house as your primary residence.

5. MYTHS VS. FACTS Myth # 1: The bank takes title to your home. Fact: You own your home and the equity in it. Myth # 2: The home cannot have a mortgage. Fact: An existing mortgage or equity line of credit is paid off by the HECM at closing. Myth # 3: There are restrictions on the use of the money I receive from a HECM. Fact: There are no restrictions.

6. MYTHS VS. FACTS Myth # 4: When you die or move out of your home permanently, the bank takes title and sells your home. Fact: When you die or move out of your home permanently, you or your estate sells the home, pays off the loan balance and keeps the remaining cash. The bank does not own your home and cannot sell it.

7. MYTHS VS. FACTS Myth # 5: The money received from a HECM will affect your social security income and Medicare benefits. Fact: The money you receive from a HECM does not affect your social security income and Medicare benefits. Myth # 6: The money you receive from a HECM is taxable. Fact: The money you receive is not taxable.

8. TAX FREE RETIREMENT You retain title to your home. Your savings are preserved and their cash flow is increased. You enjoy financial security and peach of mind. You never makes another mortgage payment as long as the remaining spouse lives in the home.

9. USE OF YOUR FUNDS The existing mortgage is paid off and cash flow improves. Purchase a new home with a fractional down payment. Purchase long term care insurance. Pay for home improvements. Pay for health expenses or in home care.

10. USE OF FUNDS Pay for grandchildren’s weddings, college expenses or help with a down payment for their first home. Set up a trust fund for children. Take that “important” trip. Buy a second home or a new car. Your choices are unlimited.

11. TYPES OF HECMs Line of credit with variable rate based on LIBOR. You can have some funds advanced at closing and a line of credit for the remainder. The unused portion of the line of credit increases at the current interest rate. The costs of the line of credit is low.

12. TYPES OF HECMs HECM Purchase. You can purchase a home with a HECM. The down payment is in the range of 40 to 50% and the HECM covers the rest of the purchase price. You will never have a mortgage payment as long as you live in your home. You do not have to pay cash to purchase a home. You can purchase a more expensive home.

13. REQUIREMENTS You have to be at least 62 years old. You have to live in your home as your primary residence. You have to pay your property taxes. You have to maintain hazard insurance. You have to pay homeowners dues, if any. You have to maintain your home in a reasonable living condition.

14. HOW TO PROCEED Meet with a HECM consultant who will give you a proposal and a list of HUD approved counselors. Meet with a counselor to obtain certificate. Make application for the HECM and an appraisal will be ordered. Close on the HECM as soon as the loan is approved.

15. BOBBY DONALDSON NMLS # 287209 MLO # I-149533 bobbydonaldson@carolina.rr.com www.bobbydonaldson.com Cell Phone: 980-722-5487