We are an experienced HUD approved lender offering all available federally-insured programs and proprietary jumbo programs (when available). We help homeowners turn dormant equity into tax-free* cash. We value your right to age in place with dignity and believe that all people deserve the right to use the equity in their homes to enrich their lives. We believe that a borrower's equity in their home is for their retirement, or their needs or desires; whether that be for medical, travel, home modification or any other needs or wants you may have. *always consult with your tax professional and / or trusted financial advisors. |
 All Reverse Mortgage® in the Wall Street Journal
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All Reverse Mortgage® In the Los Angeles Times.
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What is a Reverse Mortgage?
The Reverse Mortgage is a national program for homeowners age 62 and better, which enables you to access your home's equity without a monthly repayment. The loan is safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). This loan was signed into law as a national program in 1988 and since its inception has helped thousands of homeowners safely access the equity in their homes to help them better enjoy their retirement years. General Requirements:
Recommended Reading... Information from other trusted parties... It's Official! - Congress Extends $625,500 Loan Limit Through 2010 The continuing resolution that was passed by Congress yesterday and is now headed for the President's signature extends the $625,500 national loan limit for HECM through calendar year 2010. Although this is a temporary measure providing funding through 12/18/09 it will allow for a little more time for the final bill to be completed. |
How much is available?
The Reverse Mortgage Calculator is a system designed by the Federal Housing Administration that determines a homeowner’s eligibility for a HECM transaction. The proceeds available are based on the youngest borrower and property value. Unlike general consumer calculators found elsewhere, we regularly update and include current programs and rates currently offered. Borrowers have a choice of how they can receive their money. After the current liens on the property are paid off, you can choose a number of different ways to receive cash. You can choose to receive the funds all at once, in monthly installments, as a line of credit you can access as you choose, or a combination of any or all of the above. Regardless of how you choose to receive your money, you never make a monthly payment for as long as you live in your home, maintain required taxes and insurance. Interest Rates
HECM-Adjustable HECM-Fixed Rate > View this weeks interest rates Interest Rates are updated every Monday afternoon following the weekly Wall Street Journal Index Fixed Rate Cash Lump Sum: For those who plan to take the full draw in the beginning anyway, such as those paying off an existing mortgage or those planning to use the money immediately for other purposes, the fixed rate reverse mortgage will often give you thousands of dollars more than the adjustable options, Recent improvements to the fixed rate option has greatly reduced the costs involved. Adjustable Rate Credit Line: Unlike Home Equity Lines of Credit offered by your local bank, the line of credit cannot be closed or frozen. The line also increases in availability each month based on the unused portion. Tenure Payment Plan: Sometimes referred to as an "annuity mortgage", the proceeds made available to you may be structured into monthly installments guaranteed for life. |
Is it right for you?
A Reverse Mortgage is definitely not for all. It may surprise you to hear a reverse mortgage lender saying this but it is true. Borrowers looking for a short term loan may be better suited for a different type of financing as the loan requires insurance, origination and third-party fees that all must be financed making the loan impractical for a short term solution. However, for those who wish to remain in their homes and need extra income or cash to do so, the Home Equity Conversion Mortgage may be exactly what you are looking for. Educate yourself or family on the safeguards and laws with our free Informational guides. We explain what it is, how it works and provide answers to many Frequently Asked Questions and Common Misconceptions. You may also find current information in Our Blog > with articles, personal advise, and industry updates. Our writer and CEO Michael G. Branson has over 32years banking experience, and has been instrumental in educating some of the largest banks on the nuances of the program and it's benefits to mature homeowners. History / Safeguards
The oldest and most popular program is the Federally Insured HECM which was signed into law by Ronald Reagan back in 1988. HUD guarantees you will receive your funds for the life of your loan. With the passing of the economic stimulus of major improvements the the product include higher nationwide lending limit of $625,500 and the use of proceeds for a home purchase. Non-Recourse Part of the HUD insurance guarantees that you and your children will never have to pay more than the property is worth in a bona-fide sale. If you or your heirs attempt to sell the home and an arms-length sale nets less than the amount owed, you or your heirs will not be responsible to pay that portion which the sale did not cover. Learn more about non-recourse loans.
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Required counseling
Mandatory counseling is one of the first steps which may take place by either phone or in person. The role of the counseling agency is to review your unique financial situations during this private session and explore any alternatives that may be available such as selling your home and downsizing, available city or state grants, or other alternatives that may be available to you. Although not a requirement of the reverse mortgage loan, counselors are now required to ask potential borrowers about income, assets, debts and monthly living expenses in order to perform a budget analysis. Once you have completed this session you will be provided a counseling certificate which you will need to sign and deliver to your lender of choice. As a lender we must also give you a list of no less than 10 agencies, 5 of which are mandated by the FHA and include the National Council on Aging. Only after a lender receives an application and signed counseling can we begin the processing of your loan. To find a counselor near you click here > Purchase HECM
Considering Purchasing a new home?... Stay Liquid with a Federally Insured Purchase Reverse Mortgage. You can purchase real estate without a mortgage payment! This is exciting news to Senior Americans who have wanted to downsize, upsize, move closer to family and friends, move into senior communities for the activities or amenities they offer, or for those who find that their current home simply does not meet their needs any longer. Your Guide the Purchase HECM Starts Here: Working with a Realtor? If you are ready to make an offer on a property you must first be issued a pre qualification and attend specific purchase counseling. We have successfully closed the Purchase HECM and are ready to assist you with the necessary steps for approval. |
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Reverse Mortgages: MSNBC ConsumerMan Gets It Wrong
By Michael G. Branson |
New Scam Targets Elderly Homeowners with Reverse Mortgages
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Jumbo Reverse Mortgage to Return
By Michael Branson Jr. |
Reverse Mortgages and Natural Disasters
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