Reverse Mortgage Loans

Live in your home, with no monthly mortgage payments

reverse mortgage loan

Reverse Mortgage loans, also known as Home Equity Conversion Mortgages (HECM’s), give seniors age 62 + the ability to live in their home, with no monthly mortgage payments, by converting home equity into tax free money while still maintaining ownership. Reverse mortgage loans were created over 25 years ago to help homeowners age 62 and older convert a portion of home equity into tax-free money.

How does Reverse Mortgage work for Refinance?

A reverse mortgage loan allows you to turn some of the equity in your home into cash to improve your financial situation. With a reverse mortgage loan, you will remain on title and can stay in your home without making monthly mortgage payments during the loan period. The borrower will be required to pay for property taxes, home insurance and home maintenance. The loan balance becomes due upon the occurrence of other events including non-compliance with the loan terms.

This federally-insured loan offers multiple ways to receive the proceeds and gives you the ability to spend the cash as needed. Common uses of Reverse Mortgage loans include:

  • Paying off debt

  • Cover costly medical bills and prescriptions

  • Home repairs and modifications

  • Delay Social Security benefits

  • …and much more!

Important features of a reverse mortgage loan include:

  • 1. Proceeds from a Reverse Mortgage loan are tax-free.

  • 2. There are multiple ways to receive the loan proceeds, either as a line of credit, a term payment, a tenure payment or lump sum.

  • 3. Live in your home with no monthly mortgage payments.

Qualifications include:

  • The borrower must be 62 years or older (a non-borrowing spouse may be under age 62)

  • The home must be and remain the borrower’s primary residence

  • The borrower must own the home

  • The borrower must meet the financial requirements of the HECM program

How does Reverse Mortgage work for Purchase?

Want to buy a new home that meets your changing needs or lifestyle? Maybe you’d like to live closer to family or to the golf course? If you are at least 62 years old, now you can buy a home without having to deplete your entire savings and without having to make monthly mortgage payments!

  • No monthly mortgage payments.

  • Loan would be due when you move out permanently, sell home or pass away.

  • Down payment would be between 51 – 58% (plus closing costs), depending on your age.

  • Non-Recourse: never owe more than what the home is worth. If the heirs choose not to repay the loan and the home is foreclosed, they will NOT be liable for any deficiency.

Stipulations include maintaining primary residence, keeping current on property taxes and insurance, and making sure the house is properly maintained. Call us today to see if you qualify. As part of the process, you’ll then work with an independent reverse mortgage counselor, who can help you evaluate all concerns and benefits.

Home Buying Without Mortgage Payments

If you are a homeowner 62 years or older, the Home Equity Conversion Mortgage (HECM) for Purchase Loan may help you buy your next home without required monthly mortgage payments. The HECM for Purchase is a Federal Housing Administration (FHA) insured home loan that allows seniors to use the equity from their sale of a previous residence to buy their next primary home in one transaction. Regardless of how long you live in the home or what happens to your home’s value, you only make one, initial investment (down payment) towards the purchase.

Why Consider a HECM for Purchase Loan?

A HECM for Purchase loan can help increase purchasing power and flexibility when buying a primary residence. Many home buyers use the HECM for Purchase loan to:

  • Down size to a smaller, lower maintenance home.

  • Buy a home closer to family and friends.

  • Lower their cost of living during retirement.

  • Enjoy carefree living in a senior housing community.

  • Purchase more home for your money vs. paying 100% cash for a cheaper, less accommodating home.

Best of all, since monthly mortgage payments are not required, a HECM for Purchase loan may help preserve your hard-earned savings and improve cash flow. You will continue to own and maintain the Title of your home for as long as the property remains your primary residence.

Senior Home Buyer Benefits:
  • Eliminates monthly mortgage payments.

  • Increases your purchasing power.

  • Preserves your cash.

Eligibility Requirements:
  • Youngest Title holder must be 62 years or older.

  • Purchased home must be a primary residence occupied within 60 days of loan closing.

  • Property must be a single family home, 2-4 unit dwelling, or a FHA approved condo.

  • The difference between the purchase price of the new home and the HECM loan proceeds must be paid in cash from qualifying sources such as the sale of prior residence, home buyer’s other assets or savings.

  • Borrower must complete a HUD approved counseling session.

The amount of money you may receive from Florida HECM for Purchase Loan depends on the age of the youngest title holder, current interest rates and the lesser of the appraised value, the purchase price or the FHA lending limit. The funds available to you may be restricted for the first 12 months after the loan closing, due to the HECM requirements.

Safeguards for Borrowers:
  • Mortgage insurance premium (MIP) ensures the amount owed on the loan can never be more than the value of the home at the time of sale.

  • Independent HUD counseling is required prior to loan application.

  • Lender may only look to the value of the home for repayment; no other assets may be attached if the loan balance grows beyond the mortgaged home value (non-recourse loan).

Already a customer and need help?
Call: 239-848-2875

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