Reverse Mortgage

A Reverse Mortgage Could Change Your Life!

Experience counts. Our knowledgeable staff has years of reverse mortgage experience to answer all your questions. Faze One Funding, LLC has an A+ Rated Better Business Bureau and belongs to the National Reverse Mortgage Lenders Association.

We know what issues seniors face today. Are you on a fixed income? Is your Social Security sufficient? Do you have rising health care costs? Is your mortgage paid off? Could you use a cash reserve? If so, let us give you some facts on Reverse Mortgage, or Home Equity Conversion Mortgages, commonly Referred to as HECMs.

Homeowners 62 years or older who own their home, can convert home equity into proceeds. A unique feature of the HECM loan is the Mortgage Insurance Premium (MIP). The current FHA loan limit is $625,500. More facts include that the borrower keeps the home and retains title and ownership, while having the ability to sell at any time. There are no monthly principal and interest mortgage payments; however, homeowners must pay property taxes, homeowners association, insurance, and they must live in and maintain the home in good condition. HECM mortgages are FHA-insured, giving you peace of mind. Additional benefits includes the ability to pay off your existing mortgage with a reverse mortgage, continue your quality of life, and maintain financial self-reliance. Proceeds can be used for any purpose such as:

  • In-home care
    Healthcare costs
    Home improvements
    Long-term care
    Home purchase
    Pay property taxes
    Pay insurance
    Emergency fund
    Supplement retirement
    Travel
    Other living expenses

What are the HECM eligible property types?

  • Single-family homes
    2-4 unit properties
    Townhomes
    FHA-approved condominiums

What are the borrower responsibilities?

Eligibility requirements need to be met. Some of them include:

  • Age 62 years or older
    Pay property taxes on time
    Keep homeowner insurance
    Maintain home in good condition
    Live in the home as primary residence
    Property must be primary residence
    Home meets minimum FHA property standards
    Counseling – all homeowners are required to complete counseling session with an independent, third party counselor approved by the U.S. Department of Housing and Urban Development (HUD).

 

What are the Home Equity Conversion Mortgage (HECM) programs?

  • HECM
    Fixed
    Adjustable
    HECM for Purchase
    Fixed
    Adjustable

What are the factors affecting the payout amount determination?

  • Mortgage program chosen
    Age of youngest borrower
    Appraised value of the home
    Interest rates
    Amount of equity in home
    Payout Options

What are the types of HECM programs payout choices?

Recent changes in regulations mandate the Adjustable Rate Mortgage with options as follows:

  • Initial Draw
    Line of credit
    Monthly payment
    Any combination

When does the loan require repayment?

Repayment is required when the last surviving borrower sells the home; moves out permanently; or passes away. Social Security and Medicare are typically not affected. Supplemental Security (SSI) or Medicaid is means-tested.

Note: We always recommend that borrowers consult their federal benefits administrators or financial advisors.

What are the Consumer Protections?

  • HECMs are NON-RECOURSE Loans. Neither the borrower nor their heirs will owe more than the home is worth at the time it is sold. HECMs have no time limit. Since homeowners still own the property, they can always stay in the home provided they follow the program guidelines: pay property taxes and insurance, live in and maintain the home in good condition.
  • HECM Counseling: borrowers are required to meet with an independent, third party counselor approved by HUD.

What are HECM for Purchase Programs?

This program allows for relocation to be closer to family, as well as downsizing to a more affordable space, or upsize to a dream home. You may decide to purchase a single level, more accessible home.