REVERSE MORTGAGE FACTS
Reverse Mortgages are used by thousands of seniors every day so chances are you may know someone who has used this loan product to "age in place" and enhance their financial security.
Smaller, independent lenders who specialize in working with seniors provide the majority of
Reverse Mortgages across the United States. Cedar River Mortgage, LLC is a small independent lender. We are proud of this statement!
The federal government regulates Reverse Mortgages. This means that the amount of money available to you, and the costs you pay are primarily the same with every lender in the United States.
Who can qualify for a reverse mortgage?
- You must own your home and be 62 years old
- Any additional owners must also be 62 years old
- You need to live in the home at least 6 months a year
You can receive the equity (cash) from your home in several ways:
- In one lump sum
- In a monthly payment to you as income
- Line of credit that you draw on as needed
Or any combination of the three.
When DO you pay back the loan?
Only when you:
- Permanently move out of the home
- Sell your home
Types of Reverse Mortgages:
- Home Equity Conversation Mortgage (HECM) – Government insured FHA program. Provides cash, line of credit or monthly income subject to HUD/FHA lending limits for as long as you live in the home.
- HomeKeeper Mortgage – Government sponsored enterprise program. Provides cash, line of credit or monthly income subject to Fannie Mae lending limits for as long as you live in the home.
- HomeKeeper for Home Purchase Mortgage – Government sponsored enterprise program. Provides cash towards a percentage of approved new home purchase price. Requires your cash to cover the additional money towards purchase. Great for downsizing from original home.
- Cash Account – Jumbo Mortgage – Proprietary program provides cash options or lines of credit with emphasis on higher valued homes.
