Loan Programs

Reverse Mortgage Loans

In recent years, reverse mortgages are quickly gaining popularity. The product was designed for people that have a limited income stream during their post-employment years and wish to utilize the accumulated equity in their home to cover everyday living and healthcare expenses. The term “reverse mortgage” is derived from the nature of the loan. Instead of the homeowner making monthly payments to the lender, the lender is essentially making payments to the borrower. Of course you are required to continually pay homeowner’s insurance, property taxes, and HOA dues (if applicable) if you take out a reverse mortgage, but you are not required to make any mortgage payments on the loan as long as the home continues to serve as your primary residence.

Below is a quick overview of the general eligibility requirements and basic features of a reverse mortgage:

  • the HECM reverse mortgage is a  non-recourse loan, which means that the lender can under typical circumstances not recover more than the value of the home, even if the loan amount exceeds the value of the home
  • all borrowers on title must be a minimum of 62 years old
  • any existing loans must be paid off by utilizing the funds from the reverse mortgage
  • the property used as collateral for the reverse mortgage must be a primary residence (vacation homes and investment properties do not qualify)
  • the homeowner retains title to the property and has the freedom to sell the property at any time
  • there are several different payment options included under the terms of a reverse mortgage and these payment options include a lump sum cash disbursement, a fixed payment stream, a line of credit, or a combination of these options.

Attached is a link to reverse mortgage information provided by the National Reverse Mortgage Lenders Association. These materials are not from HUD or FHA and were not approved by HUD or a government agency

Contact one of our loan consultants today to further discuss your options!