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Reverse Mortgages

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Reverse Mortgages

HOME / LOAN PRODUCTS / REVERSE MORTGAGES

Stop making mortgage payments and realize income from the equity you have accumulated in your property with a Reverse Mortgage.

Reverse Mortgage Snapshot

Reverse Mortgage Loans are designed to help seniors age 62 and older, tap into their home equity to help cover their retirement needs.  Seniors can use the proceeds from a reverse mortgage to pay for medical care or other bills, to supplement their investment portfolio during downturns, or even delay Social Security and increase monthly benefits later in life.

Reverse Mortgage Mechanics

With a reverse mortgage, as long as you live in your home, you’re not required to make monthly principal and interest mortgage payments.* Instead, the lender makes monthly payments to you.   Further, you are not required to pay back your reverse mortgage until your home is sold, vacated, or you pass away.

*You must remain current on property taxes, hazard insurance, homeowner’s association dues, any other applicable fees, and you must be able to maintain the property.

Reverse Mortgage Uses

Funds from a reverse mortgage can be used for a variety of valuable purposes.

  • Use your home equity to cover unexpected medical or other expenses
  • Use your home equity to supplement your monthly expenses when stock market conditions may not be opportune for you to withdraw investment income or principal
  • Use your home equity to make meaningful contributions to your children or grandchildren

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Reverse Mortgage Professional: Fred Jimenez – (714) 936-9293

Home Equity Conversion Mortgage (HECM) program.

Reverse Mortgages are loans insured by the Federal Housing Administration (FHA). These types of loans are part of the FHA’s Home Equity Conversion Mortgage (HECM) program

  • What is a Home Equity Conversion Mortgage (HECM)? A HECM loan is designed for homeowners 62 and over to unlock a portion of the equity in their home by turning it into tax-free cash with no monthly mortgage payments. Consult your tax advisor, Borrower must continue to pay for property taxes, homeowners insurance and home maintenance costs.
  • How could a HECM help your client with their retirement portfolio? A HECM loan provides tax-free, liquid cash reserve for various uses.
  • How much does a HECM costs? Much like traditional mortgages, there are costs associated with originating the loan. Borrowers are charged an origination fee, a mortgage insurance premium (MIP), an appraisal fee as well as standard closing costs. The great news is that some of these fees are capped, and/or financed with the loan proceeds.

 

 

Reverse Mortgage Benefits

  • No Stress of Monthly Payments: Access your home equity without putting yourself under the financial stress associated with a typical cash-out refinance or home equity line of credit
  • Line of Credit or Lump Sum:  Access your equity in the form of a lump sum or in a line of credit on which you can draw
  • Non-recourse Loan:  Your loan only has to be repaid when your property is sold, you vacate your property, or you pass away
  • No Debt Assigned to Your Heirs: In the event of your passing, your family is given a period of time to pay off your loan or sell your home.  In addition, your family members/heirs are given the opportunity to buy your property for 95% of the appraised value, even if the house is worth less than the amount owed
  • Age in Place:  Avoid being forced out of your home for financial reasons before you want to leave

Reverse Mortgage Eligibility

  • No FICO qualification
  • No traditional debt-to-income qualification (however, borrowers must demonstrate a willingness and capacity to pay basic obligations such as property taxes, hazard insurance)
  • Borrowers must be 62 years of age or older
  • Borrowers must qualify to pay taxes, insurance, or HOA if applicable
  • You can own your home outright, or have a low balance on your mortgage that can be paid off at closing with proceeds from the reverse loan
  • The borrower must have financial resources to pay ongoing property taxes, HOA dues and other associated property fees
  • Before obtaining this type of loan, all borrowers and non-borrowing spouses must receive independent counseling

 

  • ** HomeFirst Mortgage Bankers is a NMLS Licensed mortgage bank that originates, underwrites and funds both Conventional and Government insured loans. HomeFirst Mortgage Bankers is not a federally chartered bank or trust company or depository institution. It is not authorized to accept deposits or trust accounts and is not licensed or regulated by any state or federal banking authority. HomeFirst Mortgage Bankers holds various state licenses as a lender in California, Colorado, Florida, Oregon and Texas. NMLS 1373777.**

Reverse Mortgages

HOME / LOAN PRODUCTS / REVERSE MORTGAGES

Stop making mortgage payments and realize income from the equity you have accumulated in your property with a Reverse Mortgage.

Reverse Mortgage Snapshot

Reverse Mortgage Loans are designed to help seniors age 62 and older, tap into their home equity to help cover their retirement needs.  Seniors can use the proceeds from a reverse mortgage to pay for medical care or other bills, to supplement their investment portfolio during downturns, or even delay Social Security and increase monthly benefits later in life.

Reverse Mortgage Mechanics

With a reverse mortgage, as long as you live in your home, you’re not required to make monthly principal and interest mortgage payments.* Instead, the lender makes monthly payments to you.   Further, you are not required to pay back your reverse mortgage until your home is sold, vacated, or you pass away.

*You must remain current on property taxes, hazard insurance, homeowner’s association dues, any other applicable fees, and you must be able to maintain the property.

Reverse Mortgage Uses

Funds from a reverse mortgage can be used for a variety of valuable purposes.

  • Use your home equity to cover unexpected medical or other expenses
  • Use your home equity to supplement your monthly expenses when stock market conditions may not be opportune for you to withdraw investment income or principal
  • Use your home equity to make meaningful contributions to your children or grandchildren

What is a Home Equity Conversion Mortgage (HECM)?

Reverse Mortgages are loans insured by the Federal Housing Administration (FHA). These types of loans are part of the FHA’s Home Equity Conversion Mortgage (HECM) program

  • What is a Home Equity Conversion Mortgage (HECM)? A HECM loan is designed for homeowners 62 and over to unlock a portion of the equity in their home by turning it into tax-free cash with no monthly mortgage payments. Consult your tax advisor, Borrower must continue to pay for property taxes, homeowners insurance and home maintenance costs.
  • How could a HECM help your client with their retirement portfolio? A HECM loan provides tax-free, liquid cash reserve for various uses.
  • How much does a HECM costs? Much like traditional mortgages, there are costs associated with originating the loan. Borrowers are charged an origination fee, a mortgage insurance premium (MIP), an appraisal fee as well as standard closing costs. The great news is that some of these fees are capped, and/or financed with the loan proceeds.

 

 

Reverse Mortgage Benefits

  • No Stress of Monthly Payments: Access your home equity without putting yourself under the financial stress associated with a typical cash-out refinance or home equity line of credit
  • Line of Credit or Lump Sum:  Access your equity in the form of a lump sum or in a line of credit on which you can draw
  • Non-recourse Loan:  Your loan only has to be repaid when your property is sold, you vacate your property, or you pass away
  • No Debt Assigned to Your Heirs: In the event of your passing, your family is given a period of time to pay off your loan or sell your home.  In addition, your family members/heirs are given the opportunity to buy your property for 95% of the appraised value, even if the house is worth less than the amount owed
  • Age in Place:  Avoid being forced out of your home for financial reasons before you want to leave

Reverse Mortgage Eligibility

  • No FICO qualification
  • No traditional debt-to-income qualification (however, borrowers must demonstrate a willingness and capacity to pay basic obligations such as property taxes, hazard insurance etc.)
  • Borrowers must be 62 years of age or older
  • Borrowers must qualify to pay taxes, insurance, or HOA if applicable
  • You can own your home outright, or have a low balance on your mortgage that can be paid off at closing with proceeds from the reverse loan
  • The borrower must have financial resources to pay ongoing property taxes, HOA dues and other associated property fees
  • Before obtaining this type of loan, all borrowers and non-borrowing spouses must receive independent counseling

""
1
Learn More About This Product
Type of Loanpick one!
State
First Nameyour full name
Last Nameyour full name
Cityyour full name
ZIPyour full name
Phoneyour full name
Previous
Next

Reverse Mortgage Professional: Fred Jimenez – (714) 936-9293

  • ** HomeFirst Mortgage Bankers is a NMLS Licensed mortgage bank that originates, underwrites and funds both Conventional and Government insured loans. HomeFirst Mortgage Bankers is not a federally chartered bank or trust company or depository institution. It is not authorized to accept deposits or trust accounts and is not licensed or regulated by any state or federal banking authority. HomeFirst Mortgage Bankers holds various state licenses as a lender in California, Colorado, Florida, Oregon and Texas. NMLS 1373777.**
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