Reverse Mortgage Loans

A reverse mortgage, or Home Equity Conversion Mortgage (HECM) is a mortgage program for homeowners 62 years of age or older. Homeowners can now use the equity they built up over the years to their advantage by obtaining a reverse mortgage.

To qualify for a reverse mortgage, the borrower must be 62 years of age or older, they MUST live in the home, and they can either own the home outright or have a mortgage balance that will be paid off at closing. The borrower is also required to receive consumer information from an HECM counselor prior to closing the loan.

The home must be a single family home or a 2-4 unit home with one unit occupied by the borrrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

Once the borrower is no longer using the home as their primary residence, the loan must be repaid. All proceeds beyond the amount owed belong to the borrower's estate or spouse. The borrower's heirs can receive any remaining equity in the home. Debt is not passed along to the estate or heirs.

Once the reverse mortgage is complete, the homeowner still owns the home. The homeowner will still be responsible for property taxes, insurance and maintenance on the home. A lot of people have the misunderstanding that the bank will own their home, that is not true. The lender will have a lien on the property, just like a regular mortgage, but the home still belongs to the homeowner(s). Once the homeowner moves or passes away, the home can be sold to pay off the reverse mortgage and any remaining equity in the home would go to the homeowner, if still alive, or to the heirs if the homeowner has passed away.

Contact our senior loan officer today for more information or to get started on your reverse mortgage.

Contact Us

Let us know how we can assist you. We will respond immediately.

Unable to process your action. Please try again.
Message successfully sent.