The Senior Citizens Information Resource     

Reverse Mortgage Types

There are 3 basic types of Reverse Mortgages with some variations on the same theme.

 

The current nationwide FHA limit is $625,500.00

 

Type 1:  The FHA/HUD Insured Reverse Mortgage.

90% of all Reverse Mortgages  are granted using this plan. A vast majority of that 90% are funded using the "HUD Monthly" Plan.  The "HUD Monthly" Plan has an interest rate that floats 2.50% above the One Month Libor Index. The L.I.B.O.R. (London Interbank Offering Rate) index is also offered by some lenders. The lower interest rate means a higher benefit for the Senior so the Monthly Plan is by far the most popular.  

 

There is also a FIXED RATE REVERSE MORTGAGE available. Typlically the best rate has been around 4.75% and is fixed for the life of the contract. Disbursement options are limited to all cash at closing at this time.  All of These options are Federally Insured thru FHA and the Department of Housing and Urban Development.

 

Type 2: The Fannie Mae "Homekeeper".  (no longer available)

 

With the HUD/FHA Limit increase to $625,500.00 the Homekeeper program is no longer viable in most cases.

 

This program is similar to the HUD/FHA Annual plan. It does have lower closing costs than the HUD/FHA programs and slightly higher loan limits. There is no Credit Line Growth Rate as there is with the HUD/FHA options.  The "Homekeeper" accounts for a very small number of the total Reverse Mortgages granted. In some cases older Seniors in some lower cost areas might benefit from this program.

 

Type 3: The Jumbo Reverse Mortgage 

 

These are a relatively new entry into the Reverse Mortgage arena. This is an institutionally funded Reverse Mortgage intended for use by Seniors with expensive properties $1,000,000 and up in value. 
 
While the minimum age is 62 for this program it really does not become a viable alternative until 75 or older with some rare exceptions. please either e-mail or call:

 

Ken Terrill - 800-481-9999 or locally at 619-299-9041

Inquiries by e-mail:  ken@ampy.com

 

Courtesy of: Ken Terrill- Reverse Mortgage Consultant:  We reply to inquires from all 50 states even though we are currently licensed only in California.

 

                                                                   

 

 

 

 

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