Finance
A Virginia senior homeowner aged 65 wants to convert home equity to cash while remaining in the home. Which loan is designed for this?
AHELOC
BReverse mortgage (HECM)✓ Correct
CBridge loan
DConstruction loan
Explanation
A Home Equity Conversion Mortgage (HECM) — the most common type of reverse mortgage — allows seniors 62 and older to convert home equity to cash while remaining in the home. No monthly payments are required while the borrower lives there.
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