Orange County Reverse Mortgage –

What are the different types of Reverse Mortgages?

The three basic types of reverse mortgage are; federally-insured reverse mortgages, which are known as Home Equity Conversion Mortgages (HECMs) and are backed by the U. S. Department of Housing and Urban Development (HUD); The Home Keeper which is sponsored by Fannie Mae, and proprietary reverse mortgages, which are private loans that are backed by the companies that develop them. HECMs and proprietary reverse mortgages tend to be more costly than other home loans. The up-front costs can be high, so they are generally most expensive if you stay in your home for just a short time. They are widely available, have no income or medical requirements, and can be used for any purpose.

HECMs generally provide larger loan advances at a lower total cost compared with proprietary loans. But owners of higher-valued homes may get bigger loan advances from a proprietary reverse mortgage. That is, if you have a higher appraised value without a large mortgage, then you may likely qualify for greater funds. Location (for example, your neighborhood) is only one part of the determination of appraised value. More and more proprietary reverse mortgages are being introduced into the market all the time. It is likely that competition will result in better terms for the borrowers.