Reverse Mortgage

Reverse mortgages are exclusively for people 62 years of age or older. They allow you to convert the equity in your home into available cash. Unlike a traditional mortgage, there are no monthly payments to a lender which provides peace of mind and more financial freedom.

To learn more about the benefits of reverse mortgage loans, please call us toll-free, (855) 506-2315.

Common Uses for a Reverse Mortgage
The proceeds received from a reverse mortgage can be used as you see fit. Here are some common uses for this non-taxable money:

  • Supplement your income
  • Pay medical expenses
  • Pay taxes
  • Eliminate credit card debt
  • Make home repairs and improvements
  • Replenish savings
  • Travel

If a borrower chooses to re-invest proceeds, it is important to first discuss with a qualified financial advisor.


Process to Get a Reverse Mortgage Loan
The time it takes to close depends on each individual case, but your loan officer will help you through each step.

  • Become educated on the products
    Meet with a qualified loan officer to discuss the benefits, options, and plans available to you.
     
  • Meet with a certified HECM counselor
    This is to help you fully understand the loan terms and is required by the government. Most states allow for this to be completed over the telephone and it usually takes about 30 minutes.
  • Application
    We’ll prepare an application package for you to sign and get the necessary paperwork.
  • Loan approval
    Once all the necessary paperwork is gathered and approved, we can set a closing date that works best for you.
  • Funding
    After the required 3-day rescission period, the proceeds will become available to you.


Types of Reverse Mortgages
A Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage that is federally-insured. There are several HECM products available that you may consider:

  • Fixed-Rate HECM Loan
    A fixed-rate HECM loan allows you to take all proceeds from your reverse mortgage in a lump sum after closing. The rate will not change throughout the life of the loan.
  • Adjustable Rate HECM Loan
    An adjustable rate HECM loan is based on the LIBOR and can adjust throughout the life of the loan but also allows for you to receive your proceeds through fixed monthly advances, or to establish a line of credit with your proceeds.
  • HECM for Purchase
    This program allows you to purchase a new home using a reverse mortgage. Although you will not receive cash under this program, you will be able to live in a new home without making any principal and interest payments to the bank.
  • Saver Program
    This option is available with both fixed and adjustable rates and can help borrowers who are looking for a lower cost option, but don’t need high cash advances.


Frequently Asked Questions
There are many misconceptions about reverse mortgages that may be answered by the following frequently asked questions.

  • How do I receive the proceeds from my reverse mortgage?
    You make the choice to receive the proceeds from your reverse mortgage either through a lump sum, set monthly advances, or a line of credit.
  • Who will be on title to the home after I close my reverse mortgage?
    You will continue to own the home and hold title to it.
  • When do I have to pay back the loan?
    With a reverse mortgage, there are no monthly principal and interest payments required. The loan is paid back when the last surviving borrower either passes away or moves out of the property, usually through the sale of the property.

    Note: Borrowers are responsible for maintaining current property taxes and homeowners insurance.
  • Are condominium units and manufactured homes eligible for a reverse mortgage?
    In many cases, they are eligible.
  • What happens if the loan balance becomes more than my home is worth?
    A reverse mortgage is a non-recourse loan which means that you will never owe more than the home is worth. You will never be asked to leave your home because the loan balance becomes more than the property value and your heirs will not be responsible for satisfying any balance left after the home is sold.
  • Will getting a reverse mortgage affect my Social Security or Medicare?
    Typically no, but it is important to contact your benefits coordinator for state variations in these programs.

If you have any additional questions about reverse mortgage loans, please call us toll-free, (855) 506-2315.

 

All loans are subject to credit approval. Terms, conditions, and restrictions may apply.  Rates may change at any time and vary based on loan-to-value, loan purpose, and credit score.  Final proceeds and fees will be based on an appraisal completed by an FHA-certified appraiser. Final rates and proceeds may change. If underlying assumptions, such as borrower age, change then the numbers in the analysis will change. General loan requirements apply including residency and current property taxes and insurance.

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