reverse mortgage process

The Reverse Mortgage Process

The reverse mortgage process is not as complicated as you might think.

Once you decide you are interested in participating in a reverse mortgage, you must first meet with a HECM counselor. The FHA requires that you receive HECM counseling before entering into a HECM reverse mortgage with a lender. A HECM counselor will help you understand the eligibility requirements and all the implications of participating in a reverse mortgage.

Z Reverse Mortgage will help you understand all the potential benefits from a reverse mortgage, get the best value from your reverse mortgage, and find a lender and loan program that makes the most sense for you.

In order to qualify for a HECM reverse mortgage, you must:

  • Be at least 62 years of age
  • Own your home out right or own a significant amount of equity
  • Use the home as your primary residence
  • Not be delinquent on any federal debt
  • Meet with a HUD-approved HECM counselor

Eligible properties include:

  • 1-4 unit homes occupied by the owner
  • Condominium projects approved by HUD
  • Manufactured homes that meet FHA requirements

Once we confirm that you and your property are eligible for a reverse mortgage, Z Reverse Mortgage will help you find a suitable lender. The amount of money you can receive from your reverse mortgage will vary with the lender, but the mortgage amount depends on the youngest borrower’s age; current interest rate; the lesser of appraised value, the HECM FHA mortgage limit of $625,500, the sales price; and initial mortgage insurance premium. Reverse mortgage payments can be structured as a single large payment, smaller payments every month, a line of credit, or a combination of those options.

Once we have found the right loan program for you, you can enter into your reverse mortgage and enjoy your new source of income. This income can be used in any way you see fit. Reverse mortgages help many borrowers get the cash they need to continue living in their homes, and others use it as a way to smooth out their monthly income.