Types of Reverse Mortgages

One Reverse Mortgage has the widest variety of products in the industry. The following information is about some of our most commonly used products.

Fixed Rate Reverse Mortgage

A reverse mortgage is a special type of loan program that enables you to convert home equity to tax free cash, without ever making a single mortgage payment. Now, borrowers can benefit from the added security provided by having a fixed rate for the life of the reverse mortgage loan.

Features of reverse mortgage loans include:

  • Non-recourse loan
  • Designed for homeowners age 62 and above
  • Tax free proceeds
  • No income or credit qualifications
  • No restrictions on use
HECM- The HECM (Home Equity Conversion Mortgage) is the only Reverse Mortgage insured by the federal government. HECM loans are insured by FHA (Federal Housing Administration), which is a part of the U.S. HUD (Department of Housing and Urban Development). FHA tells HECM lenders how much they can lend you and also limits the loan costs. FHA also guarantees that lenders will meet their obligations.

This plan provides lump sum cash out, line of credit or a monthly income for life or for a fixed term. You can also do a combination of all three.

  • Maximum Lending Limit- ranges from $172,632 to $362,790 depending on where the customer is located. (this adjusts annually)
  • Government Insured Program
  • Variable T-Bill interest rate plus margin is adjusted monthly (1.50 margin) or annually (3.10 margin).
  • Available balance in Line of Credit grows annually.
  • Monthly servicing fee is added to the loan balance.
  • Counseling is required by an approved HUD counselor.
Jumbo Reverse Mortgage Programs- Designed for owners with higher value homes, The jumbo reverse mortgage programs provide more loan proceeds to borrowers, exceeding HECM and Home Keeper® federal loan limits. The Jumbo Reverse Mortgage functions similarly to the FHA Home Equity Conversion Mortgage (HECM) and Fannie Mae Home Keeper® reverse mortgage programs, but is funded by a third-party investor

Unique to the marketplace, in many cases our jumbo reverse mortgages provide senior borrowers with more available cash than any other plans currently on the market. Additionally, it allows for reduced closing costs with fewer restrictions than similar products currently offered.

Christopher Russow
One Reverse Mortgage | Director of Mortgage Banking | Direct: 858.652.5903 | Fax: 734.386.2678 | Email: crussow@onereverse.com