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HECM Reverse Mortgages

With a Home Equity Conversion Mortgage (HECM) – more commonly known as a reverse mortgage – the lender pays the homeowner 62+ instead of vice versa with a traditional mortgage. 

A reverse mortgage provides the means to turn the housing wealth you have accumulated through the years into cash – without having to sell your home or pay additional monthly bills. 

Plus, you have the comfort of choosing how to pay back the loan*, including the option of deferring all payback until the last remaining borrower leaves the home.

Ways To Access Reverse Mortgage Proceeds

*Borrower(s) responsible for property taxes, home owners insurance and home maintenance. Proprietary loan options available in select states only.

Homebuying With Reverse Mortgages

A loan for homebuyers 62+, a HECM for Purchase combines a reverse mortgage with the equity from the sale of your previous home – or from other savings and assets – to buy your next primary home in a single transaction.

Regardless of how long you live in the home or what happens to your home’s value, you only make one initial down payment towards the purchase, provided that you pay property taxes and homeowner’s insurance, and maintain the home.

Once the purchase is complete, you can make payments on the home or defer payback until the last remaining borrower permanently leaves the home. There is no mandatory mortgage payment, making this option a great way to preserve cash flow later in life while aging in a safe place suitable for your lifestyle needs – present and future.

*Borrower(s) responsible for property taxes, home owners insurance and home maintenance. Proprietary loan options available in select states only.

Reverse Mortgages For Higher Valued Homes

Jumbo/proprietary reverse mortgages are customized solutions for homeowners 55 and up with higher value homes. All other reverse mortgage loans have 62+ as the minimum age requirement.

The biggest benefit of jumbo reverse mortgages is larger lending limits. While traditional reverse mortgages limit borrowers to $970,800 as of 2021, jumbo loans allow borrowers to access up to $3 million on homes valued up to $10 million.

Jumbo loans also are a great option for buyers 55 and up looking to purchase a home in excess of the HECM for Purchase lending limit.

More Jumbo Reverse Loan Advantages

*Borrower(s) responsible for property taxes, home owners insurance and home maintenance. Proprietary loan options available in select states only.

Get Your Reverse Mortgage Quote Now!

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Reverse mortgages provide qualified homeowners access to home equity, while retaining ownership of their home. 

These loans are designed to provide increased liquidity, accessibility and flexibility for homeowners 60+. 

The loan is called a “reverse mortgage” because instead of making monthly payments to a lender – as with traditional mortgages, the lender pays the borrower. 

With a variety of payout options, reverse mortgages are among the most versatile type of mortgage loans available.

Borrowers are not required to pay back the loan until the home is sold OR the last remaining homeowner permanently vacates the home. 

They can, however, make payments for any amount at their discretion without penalty.

As with any mortgage loan, borrowers must meet loan obligations: paying property taxes and homeowner’s insurance and maintaining the home. 

They also must live in the home as their primary residence.

If you’re retired or close to retirement, your home equity likely represents a large portion of your net worth.

Understanding how to strategically and tax efficiently incorporate this wealth into your retirement plan may be the key to protecting and prolonging your nest egg.

Contact us today to see if a reverse mortgage is right for you.

We are national leaders in the reverse mortgage space. 

Our team has the knowledge and expertise to get clients approved for loans that other lenders don’t.  

And because of our experience, we close loans much quicker than the industry average.

And remember, Expect More With Sless™!

Did you know that home buyers 62 and older can purchase their next home with a Reverse Mortgage?

It’s called a Home Equity Conversion Mortgage (HECM) for Purchase.

And it’s tailored to better suit the needs of the growing number of older home buyers.

Whether you want to upsize to the home of your dreams, to downsize – or to right size to a home more suited to meet your long-term needs, a HECM for purchase may be a better option, versus paying cash or taking out a 15-, 20- or even a 30-year mortgage at this stage in life.

Simply put, a HECM for Purchase loan combines a Reverse Mortgage with the equity from the sale of your previous home – or from other savings and assets – to buy your next primary home in one single transaction.

Regardless of how long you live in the home or what happens to your home’s value, you only make one initial down payment of roughly 50 percent towards the purchase, provided that you pay property taxes, homeowner’s insurance, and maintain the property.

Once the purchase is complete, you can make payments on the home or defer pay back until the last remaining borrower leaves the home. 

There is no mandatory mortgage payment, making this option a great way to preserve cash flow later in life.

Here’s an example. Tom (67) and Barb (65) live in a 3-story home no longer suitable for their lifestyle as they grow older. They wish to purchase a ranch style home with everything on one floor where they can comfortably age in place. 

Their current home value is $400,000, and they owe $100,000 on it with an ongoing payment of $1,100 a month.

After finding a new home for $300,000, Tom and Barb sell their current home and purchase the new home, where they can age comfortably in place. 

They have no mandatory monthly payment, freeing up cash flow and providing flexibility as they grow older.

This additional money can be used to bolster their retirement nest egg, help fund long term care, pay off debt, leave in legacy or estate planning and still keep some liquidity for emergencies.

The alternative would have been to pay cash for the new home using all of the proceeds from the sale of the current home or to take out a traditional mortgage with a mandatory mortgage payment, leaving them with far less flexibility as they grow older. 

This is a better option for many buyers nearing or in retirement.

If you’re ready to learn more, click below to get started. As always, Expect More with Sless!

Jumbo reverse mortgages – also known as proprietary reverse mortgages – offer several advantages for homeowners 60+ with higher home values

For starters, jumbo reverse mortgages allow for loan amounts up to $3 million for homes valued up to $10 million

Also, jumbo reverse mortgages don’t require mortgage insurance, resulting in a lower cost option for qualified borrowers.

Another plus is that jumbo reverse mortgages can pay off and replace traditional mortgage loans, reducing the burden of a mandatory monthly payment and resulting in substantial savings.

Additionally, jumbo reverse mortgages are non-recourse and don’t require you, your heirs or estate to pay the difference if the loan exceeds the home’s value at the time of sale. 

Also, most jumbo reverse mortgages allow co-borrowers and eligible non-borrowing spouses to live in the house indefinitely, as long as taxes, insurance and maintenance remain paid.

Finally, because proprietary reverse mortgages don’t require FHA approval for condominiums, they are a great option for homeowners with higher value condos.

Homeowners 60+ sitting on hundreds of thousands or even millions of dollars in home equity would be wise to consider a jumbo reverse mortgage as part of a comprehensive income strategy.

It would be our privilege to guide you on how to best leverage your housing wealth.

Contact us today.

We are national leaders in the reverse mortgage space with a full array of proprietary reverse mortgage products.

Our team will always give straight talk and offer real solutions.

And remember. Expect More With Sless™