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Reverse Mortgage Products

Your Situation May Be Different!

There are several choices for you with Reverse Mortgage Loan products. The most popular choice is the HECM, Home Equity Conversion Mortgage, which is Federally insured. Over 90+% Reverse Mortgages are the HECM, Reverse Mortgage Product. However there are other choices for different situations and you should be aware of these unique products.

Below are your Choices:

1. HECM, Reverse Mortgage
2. Fannie Mae Home Keeper
3. Jumbo Cash Account

I. HECM, Reverse Mortgage Program...

The HECM is the most popular of all Reverse Mortgage Programs, it is a Federally insured product & gives added comfort & security to senior clients. Click here to learn the basics of a reverse mortgage. HECM is the not only the most popular, but the oldest loan product. The HECM accounts for 90-95% of all Reverse Mortgages made. The HECM often provides quite a bit more cash than the other programs and provide you with the most flexibility to receive cash paid to you. You can get up to 5 (five) choices to receive HECM payments. A very popular choice with Seniors who like its variety. The terms can even be changed after your loan closes. All rates charged are either monthly or annually. A new product just introduced is a fixed rate HECM.

A partial payment may be made without penalty. If the repayment is made in full, the loan agreement is terminated. All HECM loans require counseling by an outside HUD approved agency. The session is free and is very helpful to determine if a reverse mortgage is right for you. No expense of any kind is incurred until the counseling session is completed. We cannot proceed with any processing of your reverse mortgage until we receive the signed original counseling certificate. After receiving the certificate, an appraisal procedure is then completed. Most often this is paid for by the client when the 3rd party appraiser arrives and is the only basic out of pocket incurred.

II. Fannie Mae Home Keeper

Fannie Mae is the nations largest provider of mortgages. The Fannie Mae Home Keeper was designed primarily for the use of the next home purchase. Under this program, the senior would receive a large amount of cash, (to use) and have no monthly payments. This large cash dispersement of cash would be used by the buyer to use some of the proceeds from the sale of his/her previous home for a large down payment. Any additional funds would be used to go into savings or pay off debt.

As with all reverse mortgages, the Home Keeper is an adjustable rate mortgage. The great part about House Keeper is that it allows you to obtain a new home and a Reverse Mortgage all in one single deal. This allows less out of pocket money and still eliminates monthly payments.
This loan product is very attractive for seniors who would like to move closer to their children or others, or no longer want to live an area congested with crime, or return to the roots of their childhood.

III. Cash Accounts

The strong growth in Real Estate values have been very kind in the last few years and many seniors are sitting on tons of equity that resulted from the housing boom. The HECM & Home Keeper loans are hampered by loan amount ceilings established by FHA and are of little use to more expensive neighborhoods.

If your home’s value exceed the FHA loan limits for your area, please contact us to see if a Jumbo cash account is right for you.
We recommend you always consult with your account, financial advisor, attorney, or estate planner, before proceeding with any investments or expenditure of your cash.

Jumbo Cash Accounts my be useful to you based on your particular situation. To find out if it works for you, contact us. All 3 products carry the same benefits of a HECM loan product:

1. No monthly payments
2. No income requirements
3. Non Recourse.