Loan Programs
Reverse Mortgage Loans
Reverse Mortgages are designed to enable elderly homeowners to access their equity without having to sell their home or move. The borrower can receive a lump sum, a fixed monthly payment or a line of credit to draw from. There is no repayment until the borrower sells the property or passes away. While the vast majority of Reverse Mortgage loans are refinances, this loan program can also be used to buy a home.
There are no credit or income qualifying factors with this loan program. The primary requirements are that the borrower(s) be at least 62 years of age, have a low or zero balance owed against their home and occupy the property as their primary residence. A Reverse Mortgage requires counseling by an independent HUD approved HECM counselor so the borrower is rest assured they understand how the program will benefit them.
Some of the advantages of the Reverse Mortgage loan are:
- No Credit or Income Qualifications needed
- Can be used to pay off existing monthly debts such as mortgages, car payments, medical bills, etc.
- Can be used to create a tax-free income stream
- Can be taken as a single lump sum
- Can be created as a Line of Credit that is there when needed
- Does not need to be paid back unless the home is sold or the borrower(s) pass away
Most of the Reverse Mortgages in use today are covered by FHA under their HECM program. The current HECM loan limit is $625,000. Contact Us for more information on Reverse Mortgage loans.
The Federal Housing Administration (FHA) is a division of Housing and Urban Development (HUD).
Get more information on Reverse Mortgages from AARP.
AARP also has a Reverse Mortgage Calculator available on their web site.