Reverse Mortgages

Northern Kentucky Reverse Mortgages

ECM – Home Equity Conversion Mortgage or REVERSE Mortgage – Is a FHA loan program that allows people who are 62 years old or older who on a home to convert a portion of their equity into cash. We offer Northern KY Reverse Mortgage solutions. There are some interesting elements to this loan type:

  • Borrower must occupy the property as their primary residence
  • Youngest borrower on the loan needs to be at least 62 years old – please see chart for age and required equity
  • Borrower must complete a pre-loan counseling session in person or over the phone with a HUD approved HECM counselor
  • Property can be up to 4 family home, FHA approved condo, or manuf. home that meets FHA requirements.\
  • No income or employment qualifications are required for the borrower
  • No credit score requirements – including homes in foreclosure or homes with delinquent taxes and/or judgments attached. Ex. Widow with fixed income and husband passed away
  • Monthly payments are eliminated – just responsible for taxes and insurance on the property
  • Several payment plans: Tax-free monthly income, a lump sum, or a line of credit
    • Tenure – equal monthly payments as long as one borrower lives there
    • Term – equal monthly payments for fixed period of months selected
    • Line of Credit – disbursements of payments as needed
    • Modified Tenure – combination of line of credit plus scheduled monthly payments
    • Modified Term – combination of line of credit plus monthly payments for fixed period
  • Closing costs are financed in just like most other refinances
  • Just like any other mortgage lien, the title REMAINS in the borrower’s name
  • Not as expensive as in the past
    • Reduced Upfront Mtg. Insurance option thru HECM Saver program
    • No monthly service fee with many lenders
    • Lower origination fee