How Much Loan am I Eligible For?

    • One borrower must be age 62+.

    • The home must be your primary residence.

    • Home types include

      • Single-family or townhome

      • Two-to-four-unit home with one unit occupied by the borrower

      • Condominium that is FHA-approved or eligible for Single Use Approval

      • Manufactured Homes – subject to FHA guidelines

    • Home must meet minimum FHA property standards and flood zone status.

    • New construction, you must have a Certificate of Occupancy or equivalent.

    • You must have sufficient home equity as determined by FHA’s lending guidelines.

    • We run the FHA calculation to determine all your loan type options.

    • There is a review of your long-term ability to pay taxes and insurance.

    • Loan applications require all borrowers to have in person or over-the-phone HUD Counseling, a protection for you.

    • An option for home values over one million, and for those that do not meet FHA criteria.

    • Similar consumer protections to the FHA HECM.

    • Loan limits are higher than the HECM, up to $4 million.

    • Fees and costs are typically rolled into the loan amount with the exception of required Counseling paid directly to the approved counseling agency.

    • In Oregon, Borrower’s minimum age is 55.

    • In Washington, Borrower’s minimum age is 60.

  • How much depends on multiple factors including:

    • The age of the youngest borrower or non-borrowing spouse.

    • Your home’s value and the amount of equity in your home.

    • FHA or Jumbo lending limits.

    • Current interest rates.

    The loan type and cash-out option you choose.

    • Reverse mortgage proceeds pay off your current mortgage.

    • HELOCs are also required to be paid off and closed.

    • Property taxes deferred or due within 60 days of closing must also be paid off through the loan process.

    • Some tax liens may be required to be paid off.

    • Everybody is different, and situations differ. We look at all your options, so you can make informed decisions.

Important Things to Understand
As You Consider a Reverse Mortgage 

Cheryl Teigen, Reverse Mortgage Consultation

    • As long as you continue to pay your taxes and insurance and uphold the terms of the loan, you keep the title to your home, live there and are not required to make a monthly mortgage payment.

    • Depending upon your eligible loan amount after required payoffs, there may be extra cash available to you.

    • You may be able to take it in:

      • A lump sum

      • Installment payments

      • A line of credit

      • Or a combination of the above

    • If you choose the line of credit option, the unused portion of the LOC grows every month (as long as the loan has not matured or a default has not occurred).

    • The loan is not due until the last living borrower leaves the home or the home is sold.

    • You pay your taxes, insurance, HOA if applicable, and maintain the home.

    • Proceeds from a Reverse Mortgage Loan help with cash-flow, create an emergency fund, or can be used for other needs or wants.

    We structure the loan to meet your goals. If a reverse mortgage is not right for you, we will be the first to tell you so.

    • Eliminating a monthly mortgage payment.

    • Establishing a stand-by Line of Credit for emergencies.

    • Protecting your retirement portfolio from sequence of returns risk.

    • Funding the “bucket list” of life experiences that have been out of reach so far.

    • Purchasing a new home with a Reverse Purchase Loan (and no monthly payments!)

  • What does this really mean?

    • Borrowers MAY make a payment but are NOT required to during the life of the loan.

    • The loan balance grows over time as interest & mortgage insurance accrues on the outstanding balance.

    • You receive a monthly statement showing your current loan balance & any line of credit funds available.

    • There is no pre-payment penalty if you decide to make a payment toward your loan balance.

    Why would someone make a payment?

    • You may still be working and have excess funds at the end of the month.

    • A payment pays down the loan balance, reducing interest accrual at that time.

    • If you have a credit line, then the credit line increases by that amount and gets the benefit of the ‘growth’ feature.

    • You choose whether to make a payment, invest your extra monthly funds or set it aside for a family activity.

    • You must occupy your home as your principal residence.

    • You must pay property charges (taxes, fees, insurance, HOA as applicable) and maintain the home.

    • Property tax set aside option may be available.

    • If the borrower does not meet the loan obligations, then the loan will need to be repaid.

    • You retain title to your home; the loan is a lien against your property like other home loans.

    • Non-recourse means that the lender can only recover the loan balance due, up to the value of the home, at the time when the loan is due.

    • Non-recourse debt (loan) does not allow the lender to pursue anything other than the collateral (home).

    • No debt passes to your estate or heirs should the loan balance ever exceed the value of the home. (Ask to see a sample copy of a Deed of Trust)

    • At the conclusion of a reverse mortgage, when the borrower no longer lives in the home, the home can be sold and the loan paid off.

    • You, your estate, or heirs receive the seller’s net proceeds after the loan and selling fees have been paid.

    • Family members may also refinance the loan and retain the home.

    • FHA allows for 6 months to repay the loan, or may grant upon request, additional extensions up to one year.

    • Closing costs associated with the loan may include an origination fee, title & escrow, appraisal, recording, trust review (if taking title in the name of your trust) & mortgage insurance premiums.

    • FHA caps origination fees and all lender fees must be for actual services, usual and customary.

    • Individual States set escrow & title fees.

    • We provide you with a full estimate and transparency on all loan costs.

  • A reverse mortgage may help you maintain or improve your quality of life in retirement.

    Isn’t that what you have been working for?

    Give us a call, it is just a conversation where you will get answers to your questions.

Reverse Mortgage Funds for Fun! Kim Dodge Reverse

If you made it all the way down this home page to here … Thank you.  We appreciate your time.

At this point you could be thinking, how would YOUR life be different if you no longer were required to make a monthly mortgage payment or if you had access to a Reverse Mortgage Line of Credit?

Funds for home repair and remodeling?

Funds to pay off expensive credit card debt?

Funds for unexpected medical costs or in-home help?

Or even just Funds for Fun with Grandchildren and Friends!

Funds for home repair Kim Dodge Reverse Mortgage
Do I qualify for a reverse mortgage? Kim Dodge