Finance
What is Hawaii's 'Home Equity Conversion Mortgage' program and how does it help elderly Hawaii homeowners?
AA. A state program providing second mortgages for home improvements
BB. The FHA-insured reverse mortgage program allowing homeowners 62+ to convert home equity to income while remaining in their home; particularly valuable in Hawaii given high home values✓ Correct
CC. A program converting adjustable-rate mortgages to fixed rates for senior homeowners
DD. A state grant program for elderly homeowners who cannot afford property taxes
Explanation
The Home Equity Conversion Mortgage (HECM) is the FHA-insured reverse mortgage program. Hawaii homeowners 62+ with significant home equity (very common given Hawaii's high values) can convert equity to a lump sum, line of credit, or monthly payments without making mortgage payments. The loan is repaid when the home is sold, the owner moves, or passes away. Hawaii's high values make HECMs especially valuable here.
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