What is a HECM Reverse Mortgage?
HECM stands for Home Equity Conversion Mortgage, better known as a Reverse Mortgage. Borrowers who qualify can borrow against the home’s equity. As long as property taxes and insurance are paid, qualified homeowners will have optional mortgage payments for as long as they live in the home.

HECM Qualifications

• You must be at least 62 years or older
• You must have enough equity in your home
• You must continue to pay property taxes and insurance
• Your home must be your primary residence
• You must complete a counseling session with a HUD-approved counseling agency

A Home Equity Conversion Mortgage (HECM) for Purchase is a reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage. Now you can buy your home and have optional mortgage payments.

• Flexible repayment features that the borrower can choose from
• You can choose to repay as much or as little as you would like each month
• No monthly principal and interest payments option available
• Preserve more savings and retirement assets, and improve cash flow

As with any mortgage, the borrower must keep current with property-related taxes, insurance and maintenance as part of their ongoing loan obligations.

Jumbo Reverse Mortgages – also known as Proprietary Reverse Mortgages – are loans designed and offered by financial institutions that enable owners of high value homes to access greater amounts of their home equity than is available from the government insured HECM Reverse Mortgages.

A traditional mortgage is a type of mortgage loan where a lender provides funds to a borrower to purchase a property or refinance a mortgage. In exchange, the borrower agrees to repay the loan, plus interest, over a set period. As the borrower makes payments, the amount owed on the loan decreases and the equity in the property increases.

• Loan to Value (LTV) of 96.5% – 100% Gift Allowed
• Purchase, Refinances, Cash Out
• Chenoa and other Down Payment Assistance (DPA) Programs Available
• Minimum Score of 580 with underwriting approval
• Seller Paid 2/1 Buydown Available

• Grant or 2nd Loan which covers your down payment and closing costs.
• 600 FICO credit score Allowed (Chenoa, Golden State Finance Authority (GSFA) requires 640 FICO credit score).
• Does not have to be a first-time home buyer.

A Home Equity Line of Credit (HELOC) allows homeowners to tap into their home equity as needed, providing a flexible and revolving credit line for various expenses such as home repairs and improvements, education, or other major purchases.

The VA loan program is a robust mortgage loan program. Did you know a VA loan provides qualified veterans the ability to purchase a home with no down payment? Other loan programs require small down payments, and are subject to mortgage insurance (MI). Please call us today to speak with a mortgage loan originator and obtain a Loan Estimate. We will provide you with information on your credit score if you authorize us to pull your credit and, if you qualify, pre-approval documentation so that you can quickly go shopping for a new home with confidence.

Self-employed non-QM (Non-Qualified Mortgage) loans are mortgage products designed specifically for individuals who may not meet the strict income and documentation requirements of traditional mortgages.

Self-employed non-QM loans provide a valuable financing solution for self-employed individuals seeking to purchase or refinance a home.

With flexible income verification, expanded underwriting criteria, and credit flexibility, non-QM loans offer a pathway to homeownership for those who may not qualify for traditional mortgages.

Key Features To Consider:

• Flexible Income Verification: Utilize alternative documents like bank statements and profit-and-loss statements to verify income.
• Asset-Based Underwriting: Consider assets such as savings, investments, and retirement accounts for loan approval.
• Expanded Debt-to-Income (DTI) Ratios: Accommodate the higher expenses typically associated with self-employment.
• Alternative Documentation Options: Choose from various documentation programs tailored to self-employed borrowers.

• Loan to Value (LTV) up to 90% – Loan Amounts to 4M.
• Cash Out Amounts to 3M for those that qualify – 70% LTV.
• Full Documents and 12 or 24-month Bank Statement.
• Can Also Qualify with P&L, 1099, Asset Depletion.
• Minimum 620 FICO credit score.
• ITIN Borrowers Allowed.
• Interest Only Available.
• Non-Warrantable & Condotels Allowed.

• Loan to Value (LTV) up to 80% – Loan Amounts to 3.5M.
• No Minimum Debt Service Coverage Ratio (DSCR).
• 640 FICO credit score – Foreign Nationals Allowed.
• Cash Out Amounts to 1M – 65% LTV.
• Interest Only Available.
• Non-Warrantable & Condotels Allowed.
• Non-Owner Occupied Only.

Our absolutely FREE information kit will help you and your loved ones understand the basics of the Reverse Mortgage product.

Questions? Call Us at (866)619-6947