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Reverse mortgages are a financial tool for seniors who want to supplement their income and enhance their lifestyle.  Should you choose a reverse mortgage,  your reverse mortgage can be refinanced every 12 months as long as there's equity!  

The FHA HECM, Home Equity Conversion Mortgage, is a federally insured loan Insured by the FHA, Federal Housing Administration, and regulated by HUD, Housing and Urban Development.  The reverse mortgage is a loan for homeowners 62 years and above who wish to convert part of the equity in their home for their future. There are also proprietary jumbo reverse mortgages for higher-value homes. Much of this website outlines the FHA HECM.

* NO monthly mortgage payments 

You have the option of making mortgage payments any time you like in order to protect the equity in your home. But mortgage payments are not required.

* You continue to own your home and remain on title.

It's a myth that you lose title to your home if you obtain a reverse mortgage. You are always on title.

* Reverse mortgages will not affect Social Security, Medicare, or retirement income. 

Reverse mortgage proceeds are not considered income; therefore, they do not affect your Social Security, Medicare benefits, or retirement benefits.  

* Generate cash flow, pay off mortgages, pay off credit card debt, take a vacation!  It's your money! No restrictions on the use of funds - Use your proceeds however you wish: purchase a second home (perhaps for a rental), pay off credit card debt, buy a car, travel.

* Reverse mortgage options - Take cash out, set up a line of credit, receive monthly proceeds, or a combination of all three, all depending on the available equity in your home and based on the below.

* Proceeds based on the following -
1.  age of the youngest borrower (the older you are, the more you receive).
2. lesser of the appraised value of your home OR the FHA max lending limit
3. current interest rates (fixed and adjustable available)
4. must pay off balances on current mortgages, liens, and judgments with reverse mortgage proceeds

Max FHA Lending Limit and Proprietary Jumbo Max Lending Limit - 

The maximum FHA HECM lending limit is $1,149,825, and proprietary reverse mortgage jumbos have a maximum lending limit of $4,000,000. The max home value for proprietary reverse mortgages is $10,000,000.  With the exception of New York, some proprietary reverse mortgages are available at age 55.  NOTE: All proprietary reverse mortgage loans are arranged through third party providers. Click here for the qualifications and parameters of a reverse mortgage

Question:  Isn't it about time your home paid you back? Tapping into the equity from the retirement "bank" which is your home is easier than you think. 

Proprietary, or jumbo reverse mortgages as they are often referred to, may be used for purchasing or refinancing a home with a maximum home value of $10,000,000.  Maximum loan amounts are $4,000,000, and these loans are offered by various reverse mortgage lenders as their own proprietary product with varying parameters.  1-4 family homes are eligible for this product along with condominiums and townhomes. However, you must occupy one of the condominium units as your primary residence. With a condominium, only a single unit needs to be approved to qualify. The entire condo does not need approval, and the appraisal that is done is only on your unit.  This is called single-unit approval. 

In New York state, you can now do a reverse mortgage on a co-op residence.  The proprietary reverse mortgage has been approved in only New York state and with only one lender. There is no FHA product available on co-ops as of now.  NOTE: On co-op reverse mortgages, there is no maximum appraised value!