Frequently Asked Questions
Can I ever owe more than the value of my home?
No. A reverse mortgage is a “non-recourse” loan which means that you never have to pay back more than the value of your home at the time the home is sold. This is true regardless of your loan balance when you or your heirs sell it. Because HUD insures reverse mortgages, the government would be responsible to pay the lender the difference. Therefore, you pay a Mortgage Insurance Premium (MIP) to HUD.
How much do I pay back at the end of the loan?
At the end of the loan, you would pay back the total of your initial draws and any subsequent draws, plus all interest and fees accrued during the life of the loan.
Do I still Own My Home?
Yes. Just like all other traditional loans, you still own your home, and have complete control over it. The reverse mortgage is only a lien on the home.
What Happens to my Home if I Die?
At the time the last surviving borrower dies, the reverse mortgage must be paid in full with all interest and fees. This can be done by the heirs selling the home or paying off the reverse mortgage with cash or new financing.
How Do I Request Funds When I Need Them?
Line of credit draws are typically done by mailing or by faxing a request form signed by the borrowers. The funds are commonly wired to the borrowers account within 3-5 days. For emergencies, there are expedited methods. Talk with your reverse mortgage servicer.
Can I Change the way I Get My Money After I Close?
Yes. There are three ways to receive money from a reverse mortgage, a lump sum, a monthly payment (to you), or a line of credit. If after you close you wish to receive your funds in a manner different than the method you chose at closing, you have the option of switching methods by notifying the servicing lender at any time.
How Much Home Can You Afford?
We simplified the Process.
Check out our user friendly Home Affordability Calculator to assess your debt-to-income ratio, down payment, loan amount, and mortgage payment all at once. It’s just like having your own personal adviser at the click of a button.
Use our Mortgage Calculators to quickly and easily see current mortgage rates and determine what works for you.
We can help you find the home loan to fit your financial needs.
A conventional mortgage is a home loan that falls under the conforming loan limit of $453,100 (which is set annually by the Federal Housing Finance Agency)
A mortgage that is insured by the Federal Housing Administration (FHA). FHA loans allow for down payments as low as 3.5%* and lower credit scores than most conventional loans. There are maximum loan amounts that vary by county.
Loans for premium real estate areas that exceed the conventional conforming loan limits (ranging between $453,100-$679,650 depending on area)
If you are 62 or older, leverage the equity on your primary residence.
A loan to fund your small town dreams of rural home ownership, with lenient down, income and credit requirements.
Loans for veterans, servicemembers or surviving spouses. With qualifying income and credit, you can buy a primary residence with no money down at a fantastic rate.
Tips for a Successful Closing
- It is extremely important that you do not make any major life changes immediately before or during the loan process.
- Don’t quit your job or change jobs.
- Don’t make any large purchases like a new car.
- Don’t co-sign on any loans for someone else.
- Don’t spend money that you have set aside for your down payment or closing costs.
- Don’t make any changes to your credit like opening new cards or even closing accounts without guidance from a professional.
- Keep Calm! The loan process can seem overwhelming, especially if it is your first time.