Senior Loans

Types of Senior Loans

Let's briefly go over the types of loans and benefits for Seniors.

HECM - Home Equity Conversion Mortgage

• This is an FHA-backed loan and has many benefits.

  • Non-Recourse loan:  If somehow you use up all the equity in your home over time.  You or your heirs are not responsible for any shortfall.

  • No prepayment penalty if you pay off your loan

Proprietary Reverse Mortgage

• Loans up to $4,000,0000

• Fixed Rate Mortgage

Bridge Loan

• Based on the value of your current home (Maximum list price $1,500,000), current mortgage balance, and the amount needed to buy the new home.

• The loan can be used toward part of the down payment, closing costs, and mortgage payments (up to 6 months) on the departing property up to 6 months

• May include moving expenses, non-structural renovations, and maintenance to prepare the current home for listing, and more.

  • Pay off debts such as credit cards, car loans, or HELOCs to reduce outstanding balances and improve the debt-to-income (DTI) ratio, which may increase purchasing power.

• Interest-only payment options

• "Guaranteed Buy Your Home" Program

  • Fall back option.

  • This is provided up front for your consideration

• The Process

  • Review your current property to ensure it's eligible for the Bridge Loan

  • Needed:  Address, estimated value, and estimated mortgage balance

Questions and Answers

Have more questions?  Phone, text, or email Gidget Jackson...contact info above.

What if my spouse is under 62...considered a Non-Borrowing Spouse?

• What happens if I'm over 62 and my wife/husband is younger?

  • The younger spouse becomes an "Eligible Non-Borrowing Spouse"

  • If the borrower over age 62 passes

    • The borrowing spouse can remain in the home, but cannot access remaining loan proceeds.

    • Can apply for a new reverse mortgage once 62 with legal title to the property and have all the benefits of a new loan.

    • Non-Borrowing spouse usually has 90 days to prove to the lender that they have the legal right to stay in the home and fulfil the legal obligatons which includes maintenance of the home, and paying taxes and insurance if applicable.

  • Your spouse's age is used to calculate the proceeds of the loan

Initial Proposal

• Once you apply for a Reverse Mortgage I will send you a complete proposal explaining the details of the proposal and answer any questions.

• Apply Here: https://myloan.mortgageone.com/dr/c/dl0tp

  • • Save the link above in your browser

    • Easily take pictures of documents from the App or upload them from your computer

    • Keep up with tasks for needed documents

    • Follow the progress of your loan.

Documentation

All documents can easily be uploaded from the mobile App: https://myloan.mortgageone.com/dr/c/dl0tp

Initial Documents Needed:

1. Identity and Eligibility Documents

• Government-Issued Photo ID: A valid driver’s license or state-issued ID to verify your identity and age (minimum 62 years old).

• Social Security Verification: Your Social Security card or an award letter.

• HECM Counseling Certificate: Evidence that you have completed a mandatory session with a HUD-approved counselor. 

2. Financial Assessment Documents

Lenders use these to ensure you can continue paying property taxes and insurance.

• Income Proof: Recent Social Security award letters, pension statements, or annuity statements.

• Tax Documentation: Federal tax returns (usually for the last two years) and W-2 or 1099 forms.

• Asset Statements: Recent bank statements (checking, savings) and investment account statements.

• Employment Verification: If you are still working, your most recent pay stubs covering the last 30 days.

3. Property-Related Documents

• Property Deed: To verify legal ownership of the home.  If applicable, a quit claim deed, a death certificate, or other documentation if someone is on the deed that will not be on the mortgage.

• Homeowners Insurance: A copy of your current declarations page showing coverage and annual premiums.

• Property Tax Bill: Your most recent statement showing the status of your property taxes.

• Mortgage Statements: If you have an existing lien, your most recent statement and payoff demand.

• HOA Statements: If applicable, documentation of your Homeowners Association dues and contact information.

4. Transaction-Specific Documents

• Trust Documents: If your home is held in a trust, a complete copy of the trust agreement for legal review.

• Purchase Contract: If you are using the HECM for Purchase program, the signed sales agreement and proof of your down payment funds.

• Appraisal Report: While ordered by the lender, this is a critical document used to determine your home’s value and final loan amount

Note: Additional supporting documents may be required.

Information Links - Consumer Financial Protection Bureau

• How Do Reverse Mortgage Work?  www.consumerfinance.gov/ask-cfpb/what-is-a-reverse-mortgageen-224/

• What are the types of HECMs?  www.consumerfinance.gov/ask-cfpb/are-there-different-types-ofreverse-mortgages-en-226/ 

• Who is eligible for an HECM?  www.consumerfinance.gov/ask-cfpb/can-anyone-apply-for-areverse-mortgage-loan-en-227/ 

• What does counseling involve? www.consumerfinance.gov/ask-cfpb/what-should-i-think-aboutbefore-applying-for-reverse-mortgage-en-228/

• What are the principal limits and costs?  www.consumerfinance.gov/ask-cfpb/what-are-the-costs-i-will-haveto-pay-for-a-reverse-mortgage-en-237/

• Are there reverse mortgage alternatives? www.files.consumerfinance.gov/f/documents/cfpb_reversemortgage-discussion-guide.pdf

• Who Owns the Property www.consumerfinance.gov/ask-cfpb/if-i-take-out-a-reversemortgage-loan-does-the-bank-own-my-home-en-234/

• What Happens to the Non-Borrowing Spouse if the  Borrower Dies? www.consumerfinance.gov/ask-cfpb/what-happens-my-reversemortgage-when-i-die-en-2096/

• What Do Heirs Receive?  www.consumerfinance.gov/ask-cfpb/will-my-children-be-able-tokeep-my-home-after-i-die-if-i-have-a-reverse-mortgage-loan-en-242/

• Can family members live in the home?  www.consumerfinance.gov/ask-cfpb/can-my-partner-family-ordependents-if-i-have-a-reverse-mortgage-en-1213/

• Can a reverse mortgage fund a home purchase?  www.consumerfinance.gov/ask-cfpb/can-i-use-a-reverse-mortgageloan-to-buy-a-home-en-238/

• Can a reverse mortgaged home be sold? www.consumerfinance.gov/ask-cfpb/what-happens-if-i-havereverse-mortgage-and-i-want-sell-my-home-en-2095/

• How much money can a reverse mortgage borrower get and what are the payment options? www.consumerfinance.gov/ask-cfpb/how-much-money-can-iget-with-a-reverse-mortgage-and-what-are-my-payment-optionsen-233/

• What are a borrower’s ongoing responsibilities with a reverse mortgage loan www.consumerfinance.gov/ask-cfpb/do-i-still-need-to-pay-myproperty-taxes-and-home-insurance-with-a-reverse-mortgage-loanen-235/

• When does a reverse mortgage need to be paid back? www.consumerfinance.gov/ask-cfpb/when-do-i-have-to-pay-back-areverse-mortgage-loan-en-236/

• What if a reverse mortgage borrower cannot pay their property taxes and/or homeowners' insurance?  www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-have-areverse-mortgage-and-i-cant-pay-my-property-taxes-or-insuranceen-1509/

• What can a reverse mortgage borrower do if they receive a notice of default? www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-have-areverse-mortgage-and-i-received-a-notice-that-i-am-delinquent-indefault-or-behind-on-my-property-taxes-and-insurance-en-1511/

• What happens if the balance of the loan grows larger than the value of the home? www.consumerfinance.gov/ask-cfpb/what-happens-if-my-reversemortgage-loan-balance-grows-larger-than-the-value-of-my-homeen-1217/ 

• Should a reverse mortgage be used to consolidate debts? www.consumerfinance.gov/ask-cfpb/should-i-use-a-reversemortgage-to-consolidate-my-debts-en-1219/

• Does an older homeowner need to use estate planning services to take out a reverse mortgage loan? www.consumerfinance.gov/ask-cfpb/do-i-have-to-use-an-estateplanning-service-or-pay-to-find-a-reverse-mortgage-en-229/

• Are ads saying no-payment reverse mortgages offered by Veterans Affairs legitimate? www.consumerfinance.gov/ask-cfpb/i-saw-an-ad-for-a-no-paymentreverse-mortgage-from-the-department-of-veterans-affairs-va-is-thislegitimate-en-1719/

• Comprehensive reverse mortgages discussion guide published by the federal Consumer Financial Protection Bureau www.files.consumerfinance.gov/f/documents/cfpb_reversemortgage-discussion-guide.pdf