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Reverse mortgage

Reverse mortgage information​ for seniors

Home equity conversion mortgage (HECM) is a Federal Housing Administration (FHA) reverse mortgage program. A home equity conversion mortgage offers a way for seniors to use the home equity they have accrued over the years to gain access to cash they can use for retirement or other purposes. The major benefit of a reverse mortgage is that it doesn’t require monthly payments like a regular mortgage. The reverse mortgage program enables borrowers to borrow from lenders a portion of their home’s equity.

Home equity conversion mortgage for seniors

The major benefit of a reverse mortgage is that it doesn’t require monthly payments like a regular mortgage. The reverse mortgage program enables borrowers to borrow from lenders a portion of their home’s equity. HECM is a FHA reverse mortgage program. A home equity conversion mortgage offers a way for seniors to use the home equity they have accrued over the years to gain access to cash they can use for retirement or other purposes.

Reverse mortgage information: Do you qualify?

Before you begin learning detailed information about reverse mortgages, it might be helpful to check whether you qualify for some of the requirements:

  • Be 62 years of age or older 
  • Own the property outright or paid-down a considerable amount 
  • Occupy the property as your principal residence 
  • Not be delinquent on any federal debt 
  • Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance & Homeowner Association fees, etc. 
  • Participate in a consumer information session given by a HUD- approved HECM counselor

How is a reverse mortgage repaid? Clearing what is owed.

The loan is repaid after the borrower permanently moves out of the home, stops using the property as the principal residence, sells the home or the last surviving borrower dies. The loan also becomes due if you stop paying your property charges, such as taxes, homeowners’ insurance, or fail to maintain the property in good repair.

An important piece of reverse mortgage information is that the amount owed for these mortgages can’t be larger than the value of the home. Borrowers do incur FHA mortgage insurance costs, which guarantees the borrower continue receiving their loan advances from their HECM loans. In addition, if the value of the home drops below the amount of the loan at the time of repayment, Federal Housing Administration insurance covers the difference.

The borrowers may choose to pay the loan for other reasons other than death by satisfying the outstanding HECM, selling the property for at least 95 percent of the appraised value or turn over the property to the lender with a Deed in Lieu of Foreclosure.

Getting the money: What additional reverse mortgage information do you need to know?

There are five disbursement options for receiving the money you borrow from your reverse mortgage:

  • Tenure: This option allows you to receive monthly disbursements for as long as one borrower lives & continues to occupy the property as a principal residence. 
  • Term: If you choose to go this route, you’ll receive monthly disbursements for a set period of time.  
  • Line of credit: You can set up unscheduled disbursements or in installments, at times & in an amount of your choosing until the line of credit is exhausted. 
  • Combination: You can choose line of credit with either of the above tenure or term options to set up a plan that will work to meet your needs. Ask for details. 
  • Lump sum: If you choose this option, you’ll get all of your reverse mortgage money at once.

Find out more information about reverse mortgage requirements

To learn more about reverse mortgages and the other financial products we have to offer, please contact Quontic Bank today at 1-800-388-7689.

Quontic Bank is a Member FDIC bank, regulated by the U.S. Office of the Comptroller of the Currency. We are authorized by the U.S. Department of Housing and Urban Development (HUD) to make Federal Housing Authority (FHA)-insured mortgage loans in all fifty states. We have an A+ rating from the Better Business Bureau and were named to the Top 200 Healthiest Banks In America in 2016, ranking No. 88 of the 6,199 federally insured banks in the U.S., according to DepositAccounts.com. We were also ranked the 12th largest reverse mortgage lender in the U.S. by "Reverse Mortgage Daily” in September 2017. Quontic Bank is a member of the National Reverse Mortgage Lenders Association (NRMLA) and holds NMLS ID 403503.

Disclosure: Content & information provided as a courtesy. In addition, such information should not be relied upon as the only source of information. Ask for additional details. Quontic Bank makes no representations or warranties as to accuracy or completeness of information & assumes no liability for use of this information. Terms, restrictions, conditions & fees for accounts, products, programs & services are subject to change without notice. Information is accurate & effective as of January 25, 2017. Additional lending terms, conditions, fees & exclusions may apply. Subject to eligibility & credit approval. Not all applicants will qualify. Not all products are available in all states or for all amounts. The information provided should not be construed as financial, legal or tax advice. Quontic Bank is a member of the National Reverse Mortgage Lenders Association (NRMLA) and holds NMLS ID 403503.

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