Reverse Mortgages

Imagine Waking up to a Payment-Free, Financially Secure Future - A Reverse Mortgage Could Safely Get You There!


Click the link below to see how a reverse mortgage helped turn one of our clients financial struggles into a financial success story!

A Reverse Mortgage loan is a financial tool that turns your home equity into cash that can
be used for any purpose. Unlike a traditional home mortgage or equity loan, you do not
make monthly loan payments with a Reverse Mortgage! No repayment is due as long as
you still live in your home as your primary residence, continue to pay required property
taxes and homeowners insurance and maintain the home in a reasonable condition. With
a Reverse Mortgage you can use the proceeds to:

  • Eliminate monthly mortgage payments (your home does not need to be paid off)
  • Reduce debt
  • Fund home repair
  • Help grandchildren and loved ones
  • Pay for health care and prescription drugs
  • Travel or enjoy leisure activities
  • Supplement your monthly income budget
  • Provide a cushion for the unexpected

Cash available, Programs and Costs:

  • Reverse Mortgage proceeds are calculated based on the age of the youngest
    borrower, appraised value of home (up to certain limits) and the current interest
    rates. Proceeds are available in lump sum, line of credit, monthly disbursements
    the rest of your life or a combination of these options.
  • Fixed and variable rates are available
  • Closing fees are similar to a traditional mortgage, are financed into the loan and
    you don't have to pay anything up-front except possibly the cost of HUD required


  • Homeowners age 62 and older
  • Adequate equity in your home (Your home does not need to be paid off)
  • Single family homes, townhouses, qualified condominiums, manufactured homes
    and 2-4 unit owner-occupied residences
  • Maintain home as primary residence (live there the majority of the year)
  • No minimum credit score and generally no income verification


  • You maintain title of your home (the lender does not become a title holder)
  • Tax free cash
  • No monthly mortgage payments are required
  • Nonrecourse - You will not be required to repay more than the value of your
    home at the time you or your heirs sell the home.
  • If your home value appreciates you (or your heirs) keep the remaining equity
    after repaying the reverse mortgage.
  • FHA insured and regulated
  • A Reverse Mortgage can be used to either refinance or purchase your home

Reverse Mortgage Purchase Program:

Changes by Congress to the FHA insured Reverse Mortgage program now allow seniors
to buy a home with a Reverse Mortgage. Best of all, this transaction retains all the
features and benefits of a traditional Reverse Mortgage - with no credit score
requirement and virtually no income verification. You will never have to make another
mortgage payment as long as you qualify for the Reverse Mortgage. Imagine the
financial independence you can achieve by eliminating your mortgage payment once and
for all.

Purchase Example:

A married couple wants to purchase a home valued at $300,000.
The youngest spouse is 67 years old. The current rate is 5.30%.
Purchase price of home: $300,000
Available loan proceeds after loan and closing fees:
(Calculation based on age of youngest borrower, interest rates and home value)
Minimum Down Payment required: $122,000
(You can use equity from the sale of a previous home, or other cash or savings)
Monthly Mortgage Payment: $0

In general, the older you are and the lower the cost of the home, the less will be required
for the down payment. This would be the only payment the buyer would ever make
towards the purchase - regardless of how long they end up living in the house or what
happens to home values.

HECM Home Purchase Questions and Answers

Do I have to be 62 years old to be eligible?
Yes, similar to a traditional reverse mortgage, all senior borrowers must be 62 years old.

Will there be out-of-pocket cost?
Borrowers must make a down payment to satisfy the difference between the amount of cash eligible from a reverse mortgage and the cost of the property that will be purchased, plus any HECM loan related fees that are not financed.  As with other HUD loans, these funds may be gift from a family member.

How much will I be eligible for with a reverse mortgage?
Your cash benefit will in part be based upon a combination of the following:

    • Age of the youngest borrower.
    • Current interest rate.
    • The lesser of the appraised value, actual sales price or the FHA lending limit.

Which property types are available for HECM Home Purchase?
Existing one-to-four unit properties where construction has been completed and the property is habitable.  HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

Getting Started is Easy!

We will be happy to meet with you at your convenience to discuss your needs.  We find that the first meeting with a prospective client takes about an hour to gather facts and get to know one another.  It will be an hour well spent!

If you are interested in learning more, please contact us today!

More information can be found on the HUD website at:

"The Mortgage Doctor!"

Get Started Today

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