Chapter 6: Housing
Section 14: Reverse Mortgages
A reverse mortgage is a special type of loan made to older homeowners to enable them to convert the equity in their home to cash to finance living expenses, home improvements, in-home health care, or other needs.
With a reverse mortgage, the payment stream is reversed. Payments are made by the lender to the borrower, rather than monthly repayments by the borrower to the lender, as occurs with a regular home purchase mortgage.
Reverse mortgages are limited to borrowers 62 years or older who own their home free and clear of debt or nearly so. The home must be free of tax liens.
Borrowers usually have a choice of receiving the proceeds from a reverse mortgage in the form of a lump-sum payment, fixed monthly payments for life, or line of credit. Some types of reverse mortgages also allow fixed monthly payments for a finite time period, or a combination of monthly payments and line of credit. The interest rate charged on a reverse mortgage is usually an adjustable rate that changes monthly or yearly.
A reverse mortgage isn't repayable until the borrower no longer occupies the home as his or her principal residence.
The size of reverse mortgage that a senior homeowner can receive depends on the type of reverse mortgage, the borrower's age, current interest rates, and the home's property value. The older the applicant is, the larger the monthly payments or line of credit. This is because of the use of projected life expectancies in determining the size of reverse mortgages.
Seniors do not have to meet income or credit requirements to qualify for a reverse mortgage.
Reverse mortgages are offered by banks, thrifts, mortgage banking firms, consumer finance firms, and financial services corporations. The two largest reverse mortgage programs in the United States are HUD's Home Equity Conversion Mortgage and Fannie Mae's reverse mortgage products.
Listing by city.
Arkansas Valley State Bank
HUD Approved Lender
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Citizens Bank Of Ada
HUD Approved Lender
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Coppermark Bank
HUD Approved Lender
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Financial Freedom Senior Funding Corp.
Email:
[email protected]HUD Approved Lender
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Fax:
First Commercial Bank
HUD Approved Lender
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Fax:
First Mortgage Company
Email:
[email protected]HUD Approved Lender
Voice:
Fax:
First Pryority Bank
HUD Approved Lender
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Great Plains Bank
HUD Approved Lender
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Fax:
Home Worx Mortgage
Email:
[email protected]HUD Approved Lender
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National Reverse Mortgage Lenders Association
Their website is for consumers interested in learning more about reverse mortgages. The information is provided by the National Reverse Mortgage Lenders Association (NRMLA).
The NRMLA is the national voice for lenders and investors engaged in the reverse mortgage business. NRMLA fulfills several roles, which include educating consumers about the opportunity to utilize reverse mortgages, training lenders to be sensitive to the needs of older Americans, developing Best Practices and enforcing a code of conduct to make sure lenders participating in the program treat seniors respectfully, and promoting reverse mortgages in the media.
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Reverse Mortgage Guides
Reverse Mortgage Guides is a reverse mortgage education site that explains the pros and cons of FHA reverse mortgages. They publish articles and tools for seniors who are considering a reverse mortgage and want to become fully educated before making a decision. They also provide reverse mortgage knowledge testing and certification.
Toll Free:
ReverseHelpline.com
Do not apply for a reverse mortgage without knowing all the facts including how much you qualify for, what fees are allowed by law, US HUD insured vs. non US HUD Insured and more. Call the Reverse Helpline at 866-776-0466 anytime to get information. Free public service for seniors and family of seniors.
Toll Free:
Urban Financial Group
Email:
[email protected]HUD Approved Lender