Reverse Mortgage
The Reverse Mortgage of Today is Not the Reverse Mortgage of Yesteryear
The #1 and Best Advise When It Comes to a Reverse Mortgage
The federally insured Reverse Mortgage today carries much less risk for homeowners and allows senior homeowners to live comfortably in their own homes. If you are 62 years of age or older, a Reverse Mortgage may be the answer you are looking for.
- Turn the equity in your home into Tax Free Cash.*
- No more monthly mortgage payments.*
- Pay off your existing mortgage if you have one.
- You own your home.*
- Use the cash for any purpose.
Types of Reverse Mortgage Products
As a California Mortgage Advisor, I am passionate about the benefits and options available with this program. My mission is to enhance the lives of my clients through responsible lending practices. When we meet, I will get to know your wants and needs in order to help you select the best reverse mortgage product.
- ‘Regular’ reverse mortgage (HECM)
- Proprietary reverse mortgage (Non-FHA)
- Jumbo reverse mortgages – designed specifically for high value homes
General Reverse Mortgage Requirements
If you’re thinking of applying for a reverse mortgage, keep in mind these general requirements.
- You must be at least 62 years old.
- You must have enough equity in your home to qualify.
- The home must be your primary residence.
- You must be able to continue paying property taxes and homeowners insurance.
Frequently Asked Questions
What is a Regular Reverse Mortgage?
A non-proprietary reverse mortgage, known as a Home Equity Conversion Mortgage (HECM), are insured by the government. These allow a homeowner age 62 or older to borrow against the value of his or her home.
Loan proceeds can be received through regular payments, a lump sum, a home equity line of credit (HELOC), or a combination of one or more of these. Non-proprietary reverse mortgages act as non-recourse loans, meaning the amount a borrower will owe at the time the loan is due will never exceed the home’s value at the time of sale.
Home Equity Conversion Mortgage Loan Limits (2022)
Because these reverse mortgages are insured by the United States government, there are certain restrictions in place on the loan’s conditions that must be met if the loan is to be approved by the Federal Housing Administration (FHA). One of those limits is the amount of money that can be loaned through a HECM reverse mortgage, which as of 2022 is capped by the agency at $970,800.
Other Home Equity Conversion Mortgage Requirements
Government-insured reverse mortgages are regulated by the Department of Housing and Urban Development (HUD), and have several requirements, including:
Limits on how much money a borrower can receive from the loan proceeds.
Mandatory loan counseling required for potential borrowers to ensure they understand the facts about the product before entering it.
What is a Proprietary Reverse Mortgage?
A proprietary reverse mortgage is a private loan that does not involve the government, while still providing the same basic concept of converting a portion of your home’s equity into cash. As private loans, proprietary reverse mortgages are not federally insured or bound by limits set by the Federal Housing Administration (FHA). Instead, the lender imposes their own limits.
Therefore, it is possible to receive much higher loan proceeds than a HECM reverse mortgage. That is why it is still incredibly important to work with a trusted advisor, like myself, to guide you through this process.
How Do I Qualify for a Proprietary Reverse Mortgage?
However, proprietary reverse mortgages can have much higher limits. This is why proprietary reverse mortgages are sometimes referred to as “jumbo” reverse mortgages because most borrowers tend to be seniors with home values that can be worth much more than the government’s limit.
Therefore proprietary reverse mortgages are sometimes referred to as “jumbo” reverse mortgages, as most borrowers tend to be seniors with home values that can be worth more than the government’s limit, and sometimes well beyond it.
Are There Restrictions for the Money I Receive from a Reverse Mortgage?
No, you are welcome to use the funds however you see fit. Whether it’s to cover medical expenses, home improvements, paying off your other debts, or even supplementing your income, a reverse mortgage is a great way to supplement your retirement income.
How Do I Get Started?
Many types of clients are enjoying the benefits of a Reverse Mortgage. Whether you are an “empty nester”, “aging in place”, divorcing, self-employed, strapped for cash, waiting to take social security, and more, you may benefit from the strategic uses for a reverse mortgage.
It is incredibly important to speak with a trusted mortgage advisor to help you make the best decision. Call me to start your journey towards knowledge and empowerment.
*Please consult with your financial or accounting professional for all questions about your tax liabilities. Mortgage Interest and Primary Mortgage Insurance are added to your Mortgage balance and accrue daily. Homeowner is responsible and must stay current with property taxes, homeowners insurance and maintain their home to stay compliant with the terms of their reverse mortgage. This material is not from HUD or FHA and has not been approved by HUD or any government agency. Reverse Mortgages are neither “endorsed” nor “approved” by the Federal Government.
