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