Reverse Mortgage Programs
HECM ARM | HECM Fixed | Jumbo |HECM for Purchase
By working with Seniors Reverse Mortgage, a reputable company, as a broker, Ken is able to offer a wide variety of reverse mortgage programs. Although the Jumbo programs are currently temporarily unavailable, they are described below for interest.
Since each borrower is unique, direct contact with the borrower is absolutely essential in order to best explain the programs available, advise the borrower of the best option to fit their needs and then direct them to an independent counselor. Counseling is required for all reverse mortgage loans and a counseling certificate of completion must be submitted prior to signing the final loan application. This is a protection for the borrowers, ensuring they are fully informed and making the right decision based on their personal circumstances.
Discover the peace of mind that comes from financial independence. Ken is available to answer all of your questions and provide detailed facts and figures for your review and consideration.
Home Equity Conversion Mortgage (HECM)
The Home Equity Conversion Mortgage (HECM) is the oldest and most popular reverse mortgage product, accounting for over 90 percent of the total market. Available since 1989 to homeowners 62 or older, HECMs are insured by the federal government through the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development.
The amount of money you get from a HECM depends on several factors, including: your age, appraised home value, and current interest rates. In general, the older you are and the more valuable your home (and the less you owe on your home), the more money you get. The location of your home also affects the loan size. The size of a HECM depends on the maximum loan limit, which varies by county and is adjusted annually. Keep subscribed to Ken's reverse mortgage news feed for updates!
Borrowers must pay a mortgage insurance premium (MIP), equal to 2 percent of the maximum loan limit, plus an annual premium thereafter equal to 0.5 percent of the loan amount. The insurance premium guarantees that you have continued access to your loan funds. Also, the MIP guarantees that you will never owe more than the value of your home when the HECM must be repaid.
HECM Fixed
The HECM fixed rate reverse mortgage is surprisingly low, call for the current rate. The HECM is not a Jumbo plan and the home value is limited to the HUD maximum claim amount. Fixed rate programs require cash draws at closing with no line of credit or monthly income option.
HECM for Purchase
Qualifying senior homeowners can use the FHA home equity conversion mortgage ( HECM) to buy a new home.This works by using available reverse mortgage funds along with a downpayment to purchase the home. Please see the HECM for Purchase page for further details and updates on this exciting new program! There is a page for HECM for Purchase FAQs and HECM for Purchase Guidelines for further convenience.
Introducing the Jumbo Reverse Mortgages
Reverse mortgages are growing in popularity as seniors seek alternative resources to provide cash, supplement income and fund their dreams. Jumbo loans provide the peace of mind which comes with financial independence. They are unique because they places no limit on the value of the home and amount of the loan available. This results in greater access to equity and provides additional accessible cash to the borrower.
Although in current market conditions Jumbo Reverse Mortgages are harder to come by, when the credit markets improve these should be more widely available in the future.
What Makes the New Jumbo Loans Unique?
Eligibility requirements are similar to the FHA-insured Home Equity Conversion Mortgage (or HECM) reverse mortgage programs. Like other reverse mortgage loans, there are no income or credit qualifications. Only the age of the borrower and the amount of home equity qualifies them for the loan. Plus, no repayment is required until the borrower(s) permanently leaves the home.
This allows borrowers to choose the amount of money they want with terms that best suit their needs. These reverse mortgage are for owners of higher value homes that does not force borrowers to draw a set percentage of their available credit line to enjoy the benefits of no loan fees and reduced closing costs. In addition, all fees may be financed into the loan.
How is This Different From a Home Equity Conversion Mortgage?
These loans are very similar to a Home Equity Conversion Mortgage except there is no mortgage insurance premium due. Both loans follow similar guidelines, providing available equity to borrowers. Both loans require that the borrower(s) be 62 or older and that the home is either paid in full or has a mortgage balance that can be paid off with the proceeds of the reverse mortgage.
The Jumbo Loans may offer a borrower more available cash than the HECM and HomeKeeper products. Like the HECM it is a non-recourse loan, meaning the homeowner will never owe more than the fair market value of the home.
Are the Jumbo Loans Right for You?
This plan is best suited for homeowners with an appraised home value of $700,000 and higher. Since each borrower is unique, we will help explain the programs available, advise the borrower of the best option to fit their needs and then direct them to an independent counselor.
Counseling is required for all reverse mortgage loans and a counseling certificate of completion must be submitted prior to signing the final loan application. This is a protection to the borrowers, ensuring they are fully informed and making the right decision based on their personal circumstances.
