How Reverse Mortgages Work
What is a reverse mortgage?
Will the bank own my home?
How much money can I get?
What about interest rates?
Watch our Video
Your Loan Officers should:
Listen to your individual needs, assess your financial situation, and review your credit history.
Explain to you the eligibility factors, benefits, features, options, costs, and borrower obligations associated with a Reverse Mortgage for Purchase.
Answer your questions so that you can determine if a Reverse Mortgage for Purchase is the right solution for you and, if so, which type fits your needs and goals.
Prepare you for your reverse mortgage counseling session with an independent counselor.
Reverse Mortgage Process
Schedule an Appointment
Counselor will Contact You
The Counselor will Collect from You
The Counseling Session
The counselor will discuss with you your needs & circumstances; provide info about reverse mortgages and alternative sources…
Certificate of Completion
Following Up with You
US States
Easy Steps
Reverse Mortgages
Monthly Payments
Case Studies: Bob, Debbie & Betty
HECM: Home Equity Conversion Mortgage
Use
HECM Loan- Pay off your existing mortgage
- Live in your home & maintain title
- Pay off medical bills, vehicle loans or other debts
- Improve your monthly cash flow
- Fund necessary home repairs or renovations
- Build a “safety net” for unplanned expenses
Benefits
HECM Loan- Eliminates your existing monthly mortgage payments
- You can stay in your home and maintain the title
- Loan proceeds are tax-free and can be used any way you choose
- Heirs inherit any remaining equity after paying off the HECM loan
- The HECM loan is FHA insured
Eligibility
HECM Loan- The youngest borrower must be at least 62 years of age
- Must live in your home as primary residence and have sufficient equity
- Be able to pay off your existing mortgage using the HECM loan
- Live in a single family, 2-4 unit owner-occupied home, townhouse, approved condo or manufactured home
Have questions? Get answers.
News & Resources
Reverse Mortgage Counseling
Step 1. Schedule an appointment for Reverse Mortgage Counseling. You must schedule an appointment directly with the counseling agency. This session is conducted in person or over the telephone; however, HUD advises that, if possible, you meet with your counselor...
Reverse Mortgage FAQs
Reverse Mortgage FAQs - Most Frequently Asked Questions Q: Do I still own my home? Yes. You will retain the title and ownership during the life of the HECM loan, and you can sell your home at any time. The loan will not become due as long as you continue to...
Types of HECM Loans
What types of HECM Loans are available? There are two types of Home Equity Conversion Mortgage (HECM) loans. It is important to select the one that best meets your needs. HECM Loan The HECM is available as either an adjustable- or fixed-rate loan. With the adjustable...
We love helping – retirement success
Debbie chose to do a reverse mortgage with a small line of credit of $23,000. That meant the $2000 per month house payment went away immediately. She liked her job and thought she could count on working there another 5 years. Since she only needed $400 per month to set aside for taxes and insurance now, she could maximize the catch up allowance on her 401K. That would conservatively allow the 401K balance to hit $300,000, by the time she retired. Meanwhile, at an assumed 5% average return, the $200,000 her husband left should grow to just over $268,000.
By postponing Social Security until age 70, her benefit would go up to $1886 per month as well. Lastly by age 75, the small line of credit from the reverse should likewise have grown to approximately $38,000. She planned on using this only in case of emergency and to preserve her retirement nest eggs. Smart! Be like Debbie!
