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Fellowship Home Loans Reverse Mortgages
While reverse mortgages are not a one-size-fits-all option, they do provide a valuable option for many people. The most commonly used type is the Home Equity Conversion mortgage, or HECM. The program is funded through the FHA and is available only through lenders affiliated with FHA. Reverse mortgages are designed to allow older homeowners to tap the equity they’ve built up without having to sell their homes. Since there are several requirements for reverse mortgages, it pays to carefully examine them prior to making any decisions.
Advantages Of A Fellowship Home Loans Reverse Mortgage
It’s important to know the advantages reverse mortgages provide homeowners as they reach a time in their lives where they may need an additional type of funding to enjoy themselves. The advantages include:
- Individuals 62 years old and older are eligible
- No monthly payments are required
- The program provides tax-free monthly income
(consult your tax advisor - A reverse mortgage allows you to remain in your home
- The title for the property remains in your name
- You can now use the proceeds from a reverse mortgage to purchase a new home.
Since every homeowner’s situation is different, it’s important to explore and discuss all the program’s options prior to moving forward.
Meet Our Team
Kevin Blaney
Branch Manager – NMLS 43951
Kevin has over twenty years experience in the mortgage profession. Kevin has worked specifically with the reverse mortgage program for two decades and takes a tremendous amount of pride in the work he does. He has built great relationships with his reverse mortgage clients and their families. Kevin is a proud father of four children and a devoted husband to his wife, Ellen. Kevin puts his expertise, experience and professionalism to work on every reverse mortgage applicant we meet.
What Types of Homes Qualify?
One of the initial requirements for HECMs is to meet with a qualified counselor who will review eligibility requirements, repayment options, available alternatives, and the financial implications involved. While the homeowner retains possession of the property, at some point the loan must be repaid, and the counselor will discuss how that process works. No one should enter into any agreement without fully grasping all the details involved, so asking questions to clarify any issues during the counseling session is strongly recommended. Don’t simply assume you understand all the nuances, as a misunderstanding can lead to problems later.
How Is the Amount of Reverse Mortgages Determined?
It’s really not complicated. First, of course, age is important. The amount available will depend on the ages of the borrowers, particularly the youngest borrower or non-borrowing spouse. Next, the current interest rate is a factor. Third, the amount available is limited by the appraised value of the property. Also, it’s important to remember the maximum amount available is $625,000. To find out how much you may be able to qualify for, get in touch with a Fellowship Home Loans reverse mortgage expert. While no one can tell you exactly how large a reverse mortgage you may qualify for without going through all the required steps, our experts can help you estimate what is likely to be approved
Are There Costs Involved?
Like any other mortgages, all HECM loans have costs involved. They include both initial and annual mortgage insurance premiums, fees for appraisals, inspections, surveys, mortgage taxes, and other third-party fees. Processing fees will be assessed by the lender as well. There is a set schedule for those fees, which are based on the mortgage amount. Lastly, there are servicing fees lenders may charge. Those fees are capped, and cannot exceed specific amounts.
Frequently Asked Questions
Requirements Borrowers Must Meet
One of the initial requirements for HECMs is to meet with a qualified counselor who will review eligibility requirements, repayment options, available alternatives, and the financial implications involved. While the homeowner retains possession of the property, at some point the loan must be repaid, and the counselor will discuss how that process works. No one should enter into any agreement without fully grasping all the details involved, so asking questions to clarify any issues during the counseling session is strongly recommended. Don’t simply assume you understand all the nuances, as a misunderstanding can lead to problems later.
Ask Yourself If A Reverse Mortgage Is Really The Best Option Available
One of the initial requirements for HECMs is to meet with a qualified counselor who will review eligibility requirements, repayment options, available alternatives, and the financial implications involved. While the homeowner retains possession of the property, at some point the loan must be repaid, and the counselor will discuss how that process works. No one should enter into any agreement without fully grasping all the details involved, so asking questions to clarify any issues during the counseling session is strongly recommended. Don’t simply assume you understand all the nuances, as a misunderstanding can lead to problems laterOne of the initial requirements for HECMs is to meet with a qualified counselor who will review eligibility requirements, repayment options, available alternatives, and the financial implications involved. While the homeowner retains possession of the property, at some point the loan must be repaid, and the counselor will discuss how that process works. No one should enter into any agreement without fully grasping all the details involved, so asking questions to clarify any issues during the counseling session is strongly recommended. Don’t simply assume you understand all the nuances, as a misunderstanding can lead to problems later
Questions? Get The Answers Now
One of the initial requirements for HECMs is to meet with a qualified counselor who will review eligibility requirements, repayment options, available alternatives, and the financial implications involved. While the homeowner retains possession of the property, at some point the loan must be repaid, and the counselor will discuss how that process works. No one should enter into any agreement without fully grasping all the details involved, so asking questions to clarify any issues during the counseling session is strongly recommended. Don’t simply assume you understand all the nuances, as a misunderstanding can lead to problems later
