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 can be a great way for qualified Idaho homeowners who are 62 years of age or more to access the equity in their homes without having to make monthly mortgage payments. Reverse mortgage is a highly regulated program through FHA that may provide benefits for you. The program is designed with several protections for the borrower to make sure it is a good option. Some of those protections include Reverse Mortgage Counseling, Mortgage Insurance, and Servicing.

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?
A traditional mortgage: you make a monthly payment to the bank
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?
Reverse mortgages are for those who are looking for a way to comfortably enjoy their retirement. The program could be a solution for the senior who is struggling and needs to get out from under a mortgage payment so they can afford their medicines, pay their utilities and go to dinner once in a while. In some cases, reverse mortgages can also help seniors save their home from foreclosure providing the opportunity to continue living in their home.

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?
It is recommended you work with a reverse mortgage specialist when considering this life-changing program. It is not a one size fits all program as there are over a dozen different reverse mortgage programs available. Many banks and mortgage companies do not offer reverse mortgage so working with a specialist who will match the goals of the borrower to the programs best suited for them is key.
How do I find out if I qualify for a reverse mortgage?

Borrower Requirements

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

Property Requirements

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

Reverse Mortgage Success Stories

“The Reverse Mortgage is not only nice, IT’S ESSENTIAL! With expenses going up we were able to add what we would have spent on our house payment to our monthly budget.”
Mrs. Hughes

Nampa, ID

Working with Kyle Buck made the difference in getting our loan done!
Ed

Emmett, ID

“I have lived in my home for 15 years and was going to lose it to foreclosure. Working with Kyle saved my home and now I can live here as long as I want without the financial stress of making another house payment.”
Jerry

Montana