The HECM Reverse Mortgage, an FHA insured mortgage, may allow you to enjoy the life you worked so hard for. If you are 62 years of age or older and have equity in your primary residence, you may be eligible for a reverse mortgage. Designed with Senior Homeowners in mind, a reverse mortgage offers qualified borrowers to:
Designed For Seniors for Purchase and Re-Finance
Pay off your existing mortgage
Maintain Ownership (title) to your Home
You May Be Eligible to Receive Supplemental Income
“Reverse mortgages are available to homeowners age 62 and older with significant home equity. They are a safe financial option that seniors can use to borrow against the equity in their home without having to make monthly payments as with a traditional “forward” mortgage or a home equity loan. Under a reverse mortgage, funds are advanced to the borrower and interest accrues, but the outstanding balance is not due until the last borrower leaves the home, sells, or passes away.”
Follow our step by step guide to get yourself acquainted with the Reverse Mortgage process.
- TAKE ACTION: Learn About HECM Reverse Mortgages from a news article, ad, friend, seminar, etc.
- MAKE THE CALL
- RECEIVE ORIENTATION: To further your reverse mortgage education, you are required to attend a counseling session with an independent, unbiased, HUD-approved counselor. The counseling can be done over the phone, in the comforts of your own home, or face-to-face in the counselor’s office. In some states, counseling is required to be done face-to-face.
- COUNSELING: Qualifying for a reverse mortgage may be as simple as being at least 62 years of age and owning a: house, condo, 1-4 unit property or manufactured home occupied as a primary residence. Your credit score or current monthly income are not a part of the qualification process.
- APPLICATION: Fill out an application and select a payment option: a monthly income for life or term, an up-front lump sum payment, a line of credit, or any combination of these.
- PROCESSING: The lender orders an appraisal, title work, lien payoffs, etc. An appraiser assigns a value to the home and determines the physical condition of the property.
- UNDERWRITING: After receiving all pertinent data, the lender then finalizes loan parameters with you and submits the loan package to an underwriter for final approval.
- CLOSING: Your closing agent will then contact you, where you will the sign the final loan documents. Depending on the payment plan that you choose, you will either begin to receive your money, or it will become available to you on demand.
- FUNDING: You have three business days to cancel the loan. Upon expiration of this period, the loan funds are disbursed. You do not make any monthly mortgage payments to the lender. However, you are required to pay for your property taxes, homeowners insurance and property upkeep.
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Frequently Asked Questions