A Smarter Way to Fund Your Retirement
For homeowners 62 and older, a Reverse Mortgage (HECM) lets you convert your home's equity into loan proceeds, eliminating monthly mortgage payments.
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What is a Reverse Mortgage?
A Reverse Loan is a specialized home loan available for homeowners aged 62 or older that allows them to convert home equity into tax-free cash without making mandatory monthly mortgage payments.
The loan balance, which grows over time as interest and fees are added, only becomes due and payable when the last borrower permanently leaves the home (by moving out, selling, or passing away) or fails to meet loan obligations (such as paying property taxes, insurance, or maintaining the home).
Why Offer Reverse Mortgage?
For Borrowers
Allows seniors to "age in place" and supplement diminished retirement income without taking on mandatory monthly payments. The funds are non-taxable (loan proceeds) and protected by the Non-Recourse Feature.
Borrower
- Must be 62 years of age or older (age of the youngest borrower).
- Must occupy the property as their Primary Residence.
- Must receive Mandatory Counseling from a HUD-approved agency.
Property
- Must be a Single-Family, 2-4 unit (owner-occupied), or FHA-approved Condo.
- Must meet FHA Minimum Property Standards.
- Ineligible if older Manufactured Homes (pre-6/1976) or investment properties.
Financial Assessment:
- FICO Score: No minimum score required.
- Capacity: Must demonstrate capacity to pay Ongoing Property Charges (Taxes/Insurance).
- Derogatory Events: Past default/foreclosure is not automatically disqualifying, but may require a LESA (Life Expectancy Set-Aside) if there is a history of property charge delinquencies.
Ongoing Obligations:
- Borrower remains responsible for paying Property Taxes, Homeowner's Insurance, and maintenance. (Failure to comply creates foreclosure risk).
How to apply for a Reverse Mortgage
- We will discuss your financial goals (retirement planning, eliminating mortgage payments, or accessing cash) and verify your eligibility based on age (62+), home equity, and residency.
- We will provide a detailed proposal showing your "Principal Limit"—the total amount of tax-free funds available to you.
- We will guide you through the mandatory HUD counseling process, as you must obtain a certificate from an independent counselor before we can legally proceed.
- HECM Counseling Certificate: The original signed certificate proving you completed the mandatory HUD counseling.
- Personal Identification: Valid government-issued ID (driver's license) and Social Security card.
- Income Verification: Social Security award letters, pension statements, and tax returns (if currently employed) to complete the required Financial Assessment.
- Asset Verification: Bank statements (past two months) to show you have adequate "residual income" or funds to cover any closing costs.
- Property Details: Your current mortgage statement (if you have a balance to pay off), current homeowners insurance declaration page, and the most recent property tax bill.
- Trust/Power of Attorney: A full copy of the trust agreement or POA if the loan is being originated under these instruments.
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