NMLS# - Clift Enterprises Inc. 68323
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Sequim: 360-683-4848
Port Angeles/Hawaii:
360-457-7654
Reverse Mortgage
New Reverse Mortgage Safety Features
No Monthly Mortgage Payments.
A reverse mortgage does not have to be repaid until you sell or no longer live in your home. *As the homeowner, you must remain current with hazard insurance and property tax payments, and maintain the condition of the home.
No Surprise Costs. During the application process, you’ll receive a clear and detailed breakdown of all fees and closing costs, including the total loan costs over the projected life of the loan.
Asset Protection.
After the loan is repaid, any remaining equity belongs to you or your heirs. Additionally, the HECM reverse mortgage is insured by the FHA, making it a “non-recourse” loan. This means that you can never owe more than the value of your home at the time you or your heirs sell your home to repay your reverse mortgage.
Limitation on Fees. Origination fees are regulated by the U.S. Department of Housing and Urban Development (HUD), and cannot exceed HUD limits. In addition, origination fees and closing costs may be financed as part of the reverse mortgage, so out-of-pocket expenses can be minimal.
Independent Counseling. To ensure that you understand all aspects of a reverse mortgage, you’re required to have a counseling session with an independent counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD). It usually takes about 60 to 90 minutes and can be done in-person or over the phone.
No Prepayment Penalty. Although a HECM loan is not due until the borrower permanently vacates the home, it can be paid off at any time, with no additional fees.
The Right Choice. A reverse mortgage may help you plan for a more comfortable retirement lived with greater financial independence. We encourage you to involve family members in your decision process—so you can make the choice that’s right for you.
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Limitation on Fees.
Origination fees are regulated by the U.S. Department of Housing and Urban Development (HUD), and cannot exceed HUD limits. In addition, origination fees and closing costs may be financed as part of the reverse mortgage, so out-of-pocket expenses can be minimal.
Independent Counseling.
To ensure that you understand all aspects of a reverse mortgage, you’re required to have a counseling session with an independent counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD). It usually takes about 60 to 90 minutes and can be done in-person or over the phone.
No Prepayment Penalty.
Although a HECM loan is not due until the borrower permanently vacates the home, it can be paid off at any time, with no additional fees.
The Right Choice.
A reverse mortgage may help you plan for a more comfortable retirement lived with greater financial independence. We encourage you to involve family members in your decision process—so you can make the choice that’s right for you.
Reverse Mortgage Myths
1. “A reverse mortgage requires giving up ownership of your home.”
False. As the borrower, your name remains on the title and the home is still yours—just as it would be with any mortgage. You’re required to continue paying real estate taxes, homeowner’s insurance, and providing basic maintenance to your home. Once you no longer live in the home as your primary residence, the loan balance, including interest and fees, must be repaid. *This is usually done by the homeowner or their estate selling the house.
2. “A reverse mortgage should only be used as a last resort.”
False. Many homeowners age 62 and older are now using a reverse mortgage strategically as part of a sound financial plan. For example, a reverse mortgage line of credit can serve as a cash reserve that you can tap as needed. (And unlike a traditional Home Equity Line of Credit, the unused reverse mortgage credit line actually grows over time.)
3. “There are restrictions on how I can use the money from a reverse mortgage.”
False. Reverse mortgage proceeds can be used in multiple ways. Among the most common uses are paying off an existing mortgage or other debt in order to have no monthly mortgage or debt payments; creating a cash reserve; supplementing monthly income; paying for home improvements; or covering medical bills or long-term care expenses
This material is not from HUD or FHA and has not been approved by HUD or a government agency.