want to retire in their current home
of homeowners have retirement savings below $200,000
of American homeowners have spoken with their financial advisor about home equity
Download FAR’s second annual Home Equity Punchlist to learn more
Cover long-term medical expenses
Buy a home to match needs
Fund legacy and estate plans
Diversify investments
Pay for home renovations
Pay for lifestyle improvements
*Illustration is for financial professional education purposes only and assumes a borrower age 73 who resides in Colorado with a fixed interest rate of 8.99% and financed fees of approximately 0.6% of the home value. Rate quote generated on 05/22/2023. Rates are rounded to the nearest 0.125% and are subject to change.
*Illustration is for financial professional educational purposes only and assumes a borrower aged 62 who resides in Tennessee and an adjustable interest rate, with an initial rate of 7% (+0.50% MIP), and financed fees of approximately 3.4% of the home value. Rate quote generated on 5/22/2023. Rates are rounded down to the nearest 0.125% and are subject to change.
*Illustration is for financial professional education purposes only and assumes a borrower age 64 who resides in Oregon and an adjustable rate, with an initial rate of 7% (+0.50% MIP), and financed fees of approximately 2.9% of the home value. Rate quote generated on 05/22/2023. Rates are rounded to the nearest 0.125% and are subject to change.
Yes. The borrower still retains ownership of the home and may sell it at any time with no prepayment penalties. The home is simply secured with a lien similar to a traditional mortgage or home equity line of credit.
There is never a required principal or interest payment during the life of a reverse mortgage loan. Homeowners are still required to pay property-related expenses, including taxes, insurance, and HOA fees.
Generally, the loan balance is due after the last borrower permanently moves from the home or passes away.
The borrower’s heirs may sell the home and keep any remaining equity if they wish, or refinance with a traditional mortgage if they want to retain the property. In the event the loan exceeds the value of the property, the heirs can choose to walk away via foreclosure with no responsibility to the remaining balance.
Yes, reverse mortgages are non-recourse loans, which means the lender can only look to the subject property for satisfaction of the mortgage lien. The borrower and/or heirs are never personally liable for satisfaction of the reverse mortgage.
FAR’s proprietary products can offer borrowers loan amounts up to $4 million.
Yes. The home can be in a trust, revocable or irrevocable, provided the trust meets FHA trust guidelines.
This amount is generally based on the home’s value, prevailing interest rates, and the age of the youngest borrower or eligible non-borrowing spouse.
Reverse mortgages are only available on the borrower’s primary residence, which can be a single-family home or up to a four-unit dwelling.
However, there are no restrictions on the use of reverse mortgage proceeds. As long as borrowers continue to meet the occupancy requirements of the loan, they may use their proceeds as part of a secondary property purchase.
The borrower is responsible for all property-related expenses, including taxes, insurance, and HOA fees.
No. All reverse mortgage proceeds are considered loan proceeds and not subject to income tax.
Borrowers must be at least 62 for an FHA-insured reverse mortgage and 60 (where applicable by state law) for a lender-specific product, including FAR’s proprietary solutions. Younger spouses can remain on the property title but cannot be on the loan.
The terms of the loan remain the same as long as one borrower remains in the home.