Reverse Mortgages in Idaho, California, and Washington
Why are you considering a reverse mortgage?
I want to buy a new home
The HECM for Purchase is a Federal Housing Administration (FHA) insured home loan that allows seniors to use the equity from the sale of a previous residence to buy their next primary home in one transaction.
I want to eliminate my mortgage payment
Since monthly mortgage payments are not required, a HECM for Purchase Loan may help preserve your hard-earned savings and improve cash flow.
I need money now
With a reverse mortgage, you do not make a monthly mortgage payment and in some cases the bank pays you. The funds available can be taken in a lump sum, monthly payments, or can be kept in a line of credit for later use.
Frequently Asked Questions
Questions Answered by Certified Reverse Mortgage Professional, Kyle Buck
What is a reverse mortgage?
Reverse mortgages are also known as a HECM mortgage or Home Equity Conversion Mortgage. Reverse mortgages have been around for decades in the United States. In fact, the first reverse mortgage was written in the U.S. was 1961. The program did not catch on until 1988 when the Federal Housing Authority Insurance Program was signed into law. Since 1998, over 500,000 reverse mortgages have been written, making these federally insured programs the most popular way for senior homeowners to access the equity in their homes.
What is the difference between a traditional mortgage and reverse mortgage?
When you bought your home originally, you may have taken out a mortgage from a bank. As you made your mortgage payments each month, the amount you owed on your home got smaller, and the equity you owned in your home got larger.
A reverse mortgage: no monthly mortgage payment and in some cases the bank pays you
With a reverse mortgage, you do not make a monthly mortgage payment and in some cases the bank pays you. Borrowers qualify based on their age for a percentage of the value of the home. This calculation is the same in Idaho as it is in any other state. The funds available can be taken in a lump sum, monthly payments, or can be kept in a line of credit for later use. You can repay the loan balance at any time or when the home is no longer your primary residence. Like a traditional mortgage, you are still responsible for your real estate taxes, homeowner’s insurance, and HOA fees if applicable, but no longer have a monthly mortgage payment.
Who are reverse mortgages for?
What do financial advisors think of reverse mortgage? Overall, many are in favor of reverse mortgages when used correctly. The idea of using the tax-free proceeds of a reverse mortgage rather than withdrawals from your tax-deferred investments, such as an IRA or 401(k) often are in line with a solid financial plan.
In the most recent years, reverse mortgage has opened up the doors to purchasing a home as well. Yes, you can buy a home with a mortgage and not have a monthly mortgage payment. This program allows buyers to use their cash to match their long term goals and still buy the home they want.
Do I need a reverse mortgage specialist?
How do I find out if I qualify for a reverse mortgage?
In order to qualify, you must:
- Be 62 years of age or older
- Own the property outright, have equity or wish to purchase a home
- Occupy the property as your principal residence
- Receive counseling from a HUD- approved reverse mortgage counselor
The following eligible property types must also meet all FHA property standards and flood requirements:
- Single family home or 2-4 unit home with one unit occupied by the borrower
- HUD-approved condominium project
- Manufactured home that meets FHA requirements