Reverse Mortgage Learning Center

Reverse Mortgage Options

HECM Line of Credit

This option allows you to receive your desired amount of cash at closing and also to have ongoing access to additional money that can be received in a variety of ways.  Options include receiving your money in monthly payments, a full draw on your line of credit at closing, accessing your line of credit when you need it or any combination of these choices.  Another great benefit of this program is that your unused line of credit can grow over time.

HECM Fixed

You can receive your cash in one lump sum and the low fixed rate remains the same throughout the life of the loan

HECM for Purchase

Allows you to finance the purchase of a home with no monthly payments.  This option gives you the chance to find a home that meets your needs or to move closer to family.

Eligibility

  • Youngest borrower must be 62 years of age
  • You must live in your home as your primary residence
  • Be able to pay off your existing mortgage using the HECM loan proceeds

Responsibilities

  • Complete a government approved counseling session
  • Maintain your home
  • Continue to pay property taxes and homeowners insurance

Easy 4 Step Process

1) TALK WITH AN RMA REVERSE MORTGAGE PROFESSIONAL.  We will discuss your financial needs and goals.  We will educate you about the various programs available and determine which option will best suit your needs

2) COUNSELING AND APPLICATION.  In order to safeguard your interests, you are required to speak with a government approved third party counselor.  We will provide you with a list of counselors in your area.  Most clients find their session to be informative and helpful.

3) PROCESSING.  RMA will then schedule an appraisal to determine the value of your property.  After the appraisal is complete, your loan will be submitted to underwriting where all the documents are reviewed, finalized, and prepared for closing.

4) CLOSING.  We will close the loan in the comfort of your home by coming to you with all of the documents to sign.  Once your loan funds, you can receive your loan proceeds in any way you choose- a lump sum, monthly check, a line of credit, or any combination of these options.

SAFEGUARDS

A HECM loan has built in safeguards to protect you and your home.  Here are a few examples that are put in place for your benefit:

Independent Counseling

The U.S. Department of Housing and Urban Development (HUD) requires that all reverse mortgage applicants participate in a third party counseling session.  The HUD approved counselors provide you with objective information and help you understand the process.

Federal Housing Administration (FHA) Insured

HECM loans are insured and backed by the federal government.  You are always protected against lender insolvency and you are guaranteed receipt of your loan proceeds.

Non-Recourse loan

You are government insured and protected so that you can never owe more that your house is worth at the time your loan is paid back.  This protects both you and your heirs.

Fee Limitations

The loan origination fee is regulated by the U.S. Department of Housing and Urban Development (HUD).

Capped interest rates

If your loan has an adjustable rate, there is a limit to how much some interest rates can change during a specific period of time.