A Reverse Mortgage is a federally insured, private loan also known as a HECM (Home Equity Conversion Loan). This type of loan enables homeowners 62 and older to borrow against a percentage of the equity in their home without giving up title or selling their home.
After the process begins for a reverse mortgage, you will work with a lending institution, such as a mortgage lender, bank, credit union, or savings and loan association, to obtain the HECM loan. The amount you can borrow depends on your age or the co-owner's age (whichever is less), the current interest rate, other loan fees, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.
After a reverse mortgage is in place there is no requirement to make any monthly payments. The borrower can never be forced out of their home provided they maintain the home properly and pay their property taxes and home owners insurance. The loan does not become due until the borrower no longer occupies the property as their primary residence. The borrower will never owe more than their home is worth.
Reverse mortgages have emerged as a significant financial tool for many senior homeowners. These loans cover a wide range of needs that can be satisfied such as:
Here are the basic steps to obtain a reverse mortgage:
| Awareness: | Gather information and get educated on reverse mortgages |
| Action: | Select a Reverse Mortgage Bank or other Reverse Mortgage Lender to handle your loan |
| Application: | Fill out and sign the initial reverse loan application and disclosures |
| Counseling: | Get counseling from a HUD-approved counselor |
| Appraisal: | Have a FHA appraisal completed on the property |
| Submit: | Give all necessary paperwork to Underwriting |
| Review: | Reverse Mortgage Lender will review all documents and the appraisal |
| Approval: | Reverse Mortgage Lender approves loan and releases for closing |
| Escrow: | Sign final reverse mortgage loan documents and close loan |
To instantly see an estimate of what you qualify for, please try our HECM calculator.
By Phone:
Toll Free Customer Service:
1-877-307-6454
By email:
To request a customized quote, or request a free copy of our brochure on reverse mortgages:
Please make sure you complete all information on the form. All information provided will be held in the strictest confidence.
"ReverseMortgageSupport.net specializes in: "Washington Reverse Mortgages and Oregon Reverse Mortgages"