Reverse Mortgage

Program Features

First-time buyer Primary home purchase Primary home refinance
Second home purchase Second home refinance Investment purchase
Investment refinance Short-term solution Long-term solution
Less-than-perfect credit Recent financial hardship Self employed

Program Overview

For many seniors, a reverse mortgage is a great opportunity to improve your quality of life after a lifetime of paying down, or off your home mortgage loan.  It's important to get all the facts before deciding if this is a good option for you.

There are many misunderstandings about Reverse Mortgages that are simply not true.

  • The Government DOES NOT own your home when you do a reverse mortgage.
  • Your heirs DO inherit the home after your passing.

For the children of aging parents, this program allows your parents to use the equity in their home as income, or simply eliminate any payments your parents currently have, increasing their monthly cashflow, and quality of life.

Home Equity Conversion Mortgage

Also known as a Reverse Mortgage, this Government insured loan program allows homebuyers and homeowners 62 years or older to access equity in the form of a "no payment" mortgage, or even receive monthly payments from their equity for as long as they remain in the home.

Borrower Requirements

  • Owner Occupied only – borrower must live in the home as a primary residence
  • Borrower must 62 years of age, or older
  • No Credit Score Requirements
  • No Income Limits
  • Approval determined by Age of Borrower and Equity in Home
  • Must receive Reverse Mortgage Counseling Prior to Application

Loan Terms

  • 30 Year Fixed - No Payment for Life of Borrower
  • Home Equity Line of Credit - Access Equity at Any Time
  • Home Equity Line of Credit - Receive Monthly Payments
  • Government Mortgage Insurance Required

Property Requirements

Properties eligible for FHA finaning include:

  • 1 family residence – single family residence (SFR)
  • 2 family residence – duplex (owner must occupy one unit)
  • 3 family residence – triplex (owner must occupy one unit)
  • 4 family residence – fourplex (owner must occupy one unit)
  • Single family Condominium – with HOA approval
  • Single family Townhouse – with HOA approval

Loan Limits

The maximum loan amount allowed when using a Reverse mortgage is determined by the County you live in.  Loan amounts can also vary based on the number of units in the property.

Qualifying Basics

AUS Portfolio
Manual Underwriting Yes
Mortgage Insurance Always required
Maximum Loan FHA Loan limits
Minimum Credit Score 600
Minimum Down Payment 40% down payment
Maximum DTI Determined by program
Special Features The primary qualifying criteria are age and equity. Recent changes now require income verification to ensure that property taxes and homeowner's insurance can be paid.