Frequently Asked Questions
.png)
A HECM reverse mortgage offers homeowners and homebuyers aged 62* and older the opportunity to convert a portion of their home equity into cash, installment payments, or a line of credit. Some options even allow homeowners to finance a new home purchase. With a reverse mortgage, there are no monthly mortgage payments. You can continue living in and owning your home as long as you adhere to the loan terms.
In contrast to a traditional home equity loan or Home Equity Line of Credit (HELOC), repayment for a reverse mortgage is not required until the home is sold or the last surviving borrower (or a non-borrowing spouse meeting specific criteria) no longer resides in the home. It is essential for homeowners to maintain the home's condition and stay current with other property costs, including taxes and hazard insurance, to avoid the loan being called due.
The minimum age may vary for CityFirst proprietary loans, except in states like North Carolina, Texas, or Utah, where the minimum age for all CityFirst loans is 62.
The borrower of the reverse mortgage is required to fulfill all loan responsibilities, which include residing in the property as the primary residence and covering property-related expenses such as taxes, fees, hazard insurance, and any homeowners association fees. Additionally, the borrower must upkeep the home. Failure to meet these loan obligations will necessitate the repayment of the loan.
To be eligible for a HECM reverse mortgage, you must meet the following criteria:
• You must be age 62 or older.
• The home must be the borrowers’ principal residence.
• The home must meet Federal Housing Authority (FHA) minimum property standards and flood requirements.
• The home must be one of the following property types: single-family home; a two-to-four-unit home with one unit occupied by the borrower; or a HUD-approved condominium. With new construction, you must have a Certificate of Occupancy or equivalent before you apply.
• You must have sufficient home equity. A Reverse Mortgage Specialist from Finance of America Reverse LLC (FAR) can tell you if you have
enough home equity to qualify.
Beyond verifying qualifications, our team of Reverse Mortgage Specialists can assist you in determining whether a HECM aligns with your specific situation and provide clarity on the loan details.
Most single-family homes, two- to four-unit owner-occupied homes, HUD-approved condominiums, and manufactured homes that meet FHA requirements
Costs can include an origination fee, closing costs, mortgage insurance premiums, and servicing fees, similar to those associated with a traditional mortgage.
Reverse mortgage proceeds are considered loan advances and not income, but they can affect eligibility for Medicaid and some other means-tested programs. Social Security and Medicare are typically not affected.
The loan amount is determined based on the borrower's age and the appraised value of the home. A financial assessment evaluates your capacity to meet long-term tax and insurance obligations. Mandatory counseling from a HUD-approved agency is required to address queries.
The loan proceeds are utilized to settle your existing mortgage. You can receive cash in a lump sum, with the remaining amount available as installment payments or a line of credit. The unused portion increases monthly, offering a substantial safety net for the future (provided the loan hasn't matured or experienced default).
Remember to continue covering property charges, including taxes, insurance, and any homeowners association fees. With room in your budget after eliminating monthly mortgage payments and additional cash on hand (or a growing line of credit), you can shape the retirement you've always envisioned.
The amount varies based on several factors, such as the age of the youngest borrower or non-borrowing spouse, your home's value, equity amount, FHA lending limits, the prevailing interest rate, and the specific reverse mortgage product and payment option you select. A CityFirst Reverse Mortgage Specialist can provide you with a customized, complimentary quote that aligns with your individual situation.
Homeowners who are 62 years or older, own their home outright or have a significant amount of equity, and the home is their primary residence.
While there are no strict income or credit score requirements, lenders conduct a financial assessment to ensure the borrower can afford to maintain their home and pay property taxes and homeowners insurance.
There are no restrictions on how you can use the funds from a reverse mortgage. Common uses include supplementing retirement income, covering healthcare costs, home repairs, or paying off existing debts.
You cannot outlive a reverse mortgage. You can stay in your home for as long as you wish, provided you comply with the loan terms, such as maintaining the home and paying property taxes and insurance.
Upon the borrower's death, the heirs have the option to repay the reverse mortgage and keep the home, sell the home to repay the loan, or deed the home to the lender. If the home is sold for more than the loan balance, the heirs receive the remaining equity.
Unlock Your Retirement Potential with a HECM Reverse Mortgage
Experience the 2024
Reverse Mortgage
Retirement Made Comfortable
Unlock Your Retirement Potential with a HECM Reverse Mortgage
Experience the 2024 Reverse Mortgage
Retirement Made Comfortable
.png)
Unlock Your Retirement Potential with a HECM Reverse Mortgage
Experience the 2024
Reverse Mortgage
Retirement Made Comfortable
Reverse Mortgage Calculator
FHA HECM Lending Limit 2024 - $1, 149, 825
All the math is based off a maximum home value of $1, 149, 825
Platinum 4.0 is our Jumbo Option - No limit on home value starting at $1.2M
Glossary:
This refers to the specific type of reverse mortgage product being offered. Different products may have varying features, benefits, and terms that cater to different needs.
The initial interest rate on the reverse mortgage loan. This rate is often adjustable and can change over time based on the loan's index and margin.
This is a 10 year projected interest rate average used to calculate the principal limit of a reverse mortgage (Or what a borrower qualifies for). It's not the rate at which interest accrues on the loan balance. Instead, it's used to estimate the loan's future balance and the amount of home equity that might be left over time.
Mortgage Insurance Premium rate. For HECM loans, this insurance is required by the FHA and protects both the lender and borrower. The MIP ensures that if the company managing your account (the lender) goes out of business, the government will step in and make sure you have continued access to your loan funds as this loan is guaranteed. It also guarantees that you will never owe more than your home is worth.
The appraised value of your home. This is used to determine the maximum amount you can borrow with a reverse mortgage.
The maximum amount you can borrow through a reverse mortgage. It's based on the youngest borrower's age, the home's value, and the expected interest rate.
The amount of money from the reverse mortgage that will be used to pay off existing liens or mortgages on the property. This ensures the reverse mortgage is in the first lien position.
The amount of money available to the borrower from the reverse mortgage after paying off existing liens and closing costs. This can be accessed through various payment options depending on the product chosen.
If the reverse mortgage product includes a line of credit option, this is the amount available to the borrower that can be drawn upon as needed. The unused portion of the line of credit may grow over time, depending on the product's terms.
This refers to the amount of cash available to the borrower at closing after all liens and closing costs have been paid. Depending on the reverse mortgage product and the borrower's choices, this could be a lump sum or part of a structured payment plan.
Inclusion of the reverse mortgage calculator on this page should not be construed as advice or recommendations regarding the appropriateness of a reverse mortgage to a viewer’s individual circumstances. If website visitor makes use of the reverse mortgage calculator contained within or linked to this site, he or she acknowledges that the information resulting from the use of any such calculator is intended to be used for illustrative and educational purposes only and is not, and should not be construed, as the receipt of, or a substitute for, personalized individual advice from City First Mortgage Services, LLC or from any investment professional. Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the adviser’s services will vary based upon a variety of factors, such as the client’s investment, tax, and financial circumstances and overall objectives. Neither personalized nor tailored services should be construed as a guarantee of a particular outcome. Past performance does not guarantee future results. All investing comes with risk, including the risk of loss.
Frequently Asked Questions
A HECM reverse mortgage offers homeowners and homebuyers aged 62* and older the opportunity to convert a portion of their home equity into cash, installment payments, or a line of credit. Some options even allow homeowners to finance a new home purchase. With a reverse mortgage, there are no monthly mortgage payments. You can continue living in and owning your home as long as you adhere to the loan terms.
In contrast to a traditional home equity loan or Home Equity Line of Credit (HELOC), repayment for a reverse mortgage is not required until the home is sold or the last surviving borrower (or a non-borrowing spouse meeting specific criteria) no longer resides in the home. It is essential for homeowners to maintain the home's condition and stay current with other property costs, including taxes and hazard insurance, to avoid the loan being called due.
The minimum age may vary for CityFirst proprietary loans, except in states like North Carolina, Texas, or Utah, where the minimum age for all CityFirst loans is 62.
The borrower of the reverse mortgage is required to fulfill all loan responsibilities, which include residing in the property as the primary residence and covering property-related expenses such as taxes, fees, hazard insurance, and any homeowners association fees. Additionally, the borrower must upkeep the home. Failure to meet these loan obligations will necessitate the repayment of the loan.
To be eligible for a HECM reverse mortgage, you must meet the following criteria:
• You must be age 62 or older.
• The home must be the borrowers’ principal residence.
• The home must meet Federal Housing Authority (FHA) minimum property standards and flood requirements.
• The home must be one of the following property types: single-family home; a two-to-four-unit home with one unit occupied by the borrower; or a HUD-approved condominium. With new construction, you must have a Certificate of Occupancy or equivalent before you apply.
• You must have sufficient home equity. A Reverse Mortgage Specialist from Finance of America Reverse LLC (FAR) can tell you if you have
enough home equity to qualify.
Beyond verifying qualifications, our team of Reverse Mortgage Specialists can assist you in determining whether a HECM aligns with your specific situation and provide clarity on the loan details.
Most single-family homes, two- to four-unit owner-occupied homes, HUD-approved condominiums, and manufactured homes that meet FHA requirements
Costs can include an origination fee, closing costs, mortgage insurance premiums, and servicing fees, similar to those associated with a traditional mortgage.
Reverse mortgage proceeds are considered loan advances and not income, but they can affect eligibility for Medicaid and some other means-tested programs. Social Security and Medicare are typically not affected.
The loan amount is determined based on the borrower's age and the appraised value of the home. A financial assessment evaluates your capacity to meet long-term tax and insurance obligations. Mandatory counseling from a HUD-approved agency is required to address queries.
The loan proceeds are utilized to settle your existing mortgage. You can receive cash in a lump sum, with the remaining amount available as installment payments or a line of credit. The unused portion increases monthly, offering a substantial safety net for the future (provided the loan hasn't matured or experienced default).
Remember to continue covering property charges, including taxes, insurance, and any homeowners association fees. With room in your budget after eliminating monthly mortgage payments and additional cash on hand (or a growing line of credit), you can shape the retirement you've always envisioned.
The amount varies based on several factors, such as the age of the youngest borrower or non-borrowing spouse, your home's value, equity amount, FHA lending limits, the prevailing interest rate, and the specific reverse mortgage product and payment option you select. A CityFirst Reverse Mortgage Specialist can provide you with a customized, complimentary quote that aligns with your individual situation.
Homeowners who are 62 years or older, own their home outright or have a significant amount of equity, and the home is their primary residence.
While there are no strict income or credit score requirements, lenders conduct a financial assessment to ensure the borrower can afford to maintain their home and pay property taxes and homeowners insurance.
There are no restrictions on how you can use the funds from a reverse mortgage. Common uses include supplementing retirement income, covering healthcare costs, home repairs, or paying off existing debts.
You cannot outlive a reverse mortgage. You can stay in your home for as long as you wish, provided you comply with the loan terms, such as maintaining the home and paying property taxes and insurance.
Upon the borrower's death, the heirs have the option to repay the reverse mortgage and keep the home, sell the home to repay the loan, or deed the home to the lender. If the home is sold for more than the loan balance, the heirs receive the remaining equity.
Frequently Asked Questions
A HECM reverse mortgage offers homeowners and homebuyers aged 62* and older the opportunity to convert a portion of their home equity into cash, installment payments, or a line of credit. Some options even allow homeowners to finance a new home purchase. With a reverse mortgage, there are no monthly mortgage payments. You can continue living in and owning your home as long as you adhere to the loan terms.
In contrast to a traditional home equity loan or Home Equity Line of Credit (HELOC), repayment for a reverse mortgage is not required until the home is sold or the last surviving borrower (or a non-borrowing spouse meeting specific criteria) no longer resides in the home. It is essential for homeowners to maintain the home's condition and stay current with other property costs, including taxes and hazard insurance, to avoid the loan being called due.
The minimum age may vary for CityFirst proprietary loans, except in states like North Carolina, Texas, or Utah, where the minimum age for all CityFirst loans is 62.
The loan amount is determined based on the borrower's age and the appraised value of the home. A financial assessment evaluates your capacity to meet long-term tax and insurance obligations. Mandatory counseling from a HUD-approved agency is required to address queries.
The loan proceeds are utilized to settle your existing mortgage. You can receive cash in a lump sum, with the remaining amount available as installment payments or a line of credit. The unused portion increases monthly, offering a substantial safety net for the future (provided the loan hasn't matured or experienced default).
Remember to continue covering property charges, including taxes, insurance, and any homeowners association fees. With room in your budget after eliminating monthly mortgage payments and additional cash on hand (or a growing line of credit), you can shape the retirement you've always envisioned.
The borrower of the reverse mortgage is required to fulfill all loan responsibilities, which include residing in the property as the primary residence and covering property-related expenses such as taxes, fees, hazard insurance, and any homeowners association fees. Additionally, the borrower must upkeep the home. Failure to meet these loan obligations will necessitate the repayment of the loan.
The amount varies based on several factors, such as the age of the youngest borrower or non-borrowing spouse, your home's value, equity amount, FHA lending limits, the prevailing interest rate, and the specific reverse mortgage product and payment option you select. A CityFirst Reverse Mortgage Specialist can provide you with a customized, complimentary quote that aligns with your individual situation.
To be eligible for a HECM reverse mortgage, you must meet the following criteria:
• You must be age 62 or older.
• The home must be the borrowers’ principal residence.
• The home must meet Federal Housing Authority (FHA) minimum property standards and flood requirements.
• The home must be one of the following property types: single-family home; a two-to-four-unit home with one unit occupied by the borrower; or a HUD-approved condominium. With new construction, you must have a Certificate of Occupancy or equivalent before you apply.
• You must have sufficient home equity. A Reverse Mortgage Specialist from Finance of America Reverse LLC (FAR) can tell you if you have
enough home equity to qualify.
Beyond verifying qualifications, our team of Reverse Mortgage Specialists can assist you in determining whether a HECM aligns with your specific situation and provide clarity on the loan details.
Homeowners who are 62 years or older, own their home outright or have a significant amount of equity, and the home is their primary residence.
Most single-family homes, two- to four-unit owner-occupied homes, HUD-approved condominiums, and manufactured homes that meet FHA requirements
While there are no strict income or credit score requirements, lenders conduct a financial assessment to ensure the borrower can afford to maintain their home and pay property taxes and homeowners insurance.
Costs can include an origination fee, closing costs, mortgage insurance premiums, and servicing fees, similar to those associated with a traditional mortgage.
There are no restrictions on how you can use the funds from a reverse mortgage. Common uses include supplementing retirement income, covering healthcare costs, home repairs, or paying off existing debts.
You cannot outlive a reverse mortgage. You can stay in your home for as long as you wish, provided you comply with the loan terms, such as maintaining the home and paying property taxes and insurance.
Reverse mortgage proceeds are considered loan advances and not income, but they can affect eligibility for Medicaid and some other means-tested programs. Social Security and Medicare are typically not affected.
Upon the borrower's death, the heirs have the option to repay the reverse mortgage and keep the home, sell the home to repay the loan, or deed the home to the lender. If the home is sold for more than the loan balance, the heirs receive the remaining equity.
.png)
.png)
FHA HECM Lending Limit 2024 - $1, 149, 825
All the math is based off a maximum home value of $1, 149, 825
Platinum 4.0 is our Jumbo Option - No limit on home value starting at $1.2M
Reverse Mortgage Calculator
This refers to the specific type of reverse mortgage product being offered. Different products may have varying features, benefits, and terms that cater to different needs.
The initial interest rate on the reverse mortgage loan. This rate is often adjustable and can change over time based on the loan's index and margin.
This is a 10 year projected interest rate average used to calculate the principal limit of a reverse mortgage (Or what a borrower qualifies for). It's not the rate at which interest accrues on the loan balance. Instead, it's used to estimate the loan's future balance and the amount of home equity that might be left over time.
Mortgage Insurance Premium rate. For HECM loans, this insurance is required by the FHA and protects both the lender and borrower. The MIP ensures that if the company managing your account (the lender) goes out of business, the government will step in and make sure you have continued access to your loan funds as this loan is guaranteed. It also guarantees that you will never owe more than your home is worth.
The appraised value of your home. This is used to determine the maximum amount you can borrow with a reverse mortgage.
The maximum amount you can borrow through a reverse mortgage. It's based on the youngest borrower's age, the home's value, and the expected interest rate.
The amount of money from the reverse mortgage that will be used to pay off existing liens or mortgages on the property. This ensures the reverse mortgage is in the first lien position.
The amount of money available to the borrower from the reverse mortgage after paying off existing liens and closing costs. This can be accessed through various payment options depending on the product chosen.
If the reverse mortgage product includes a line of credit option, this is the amount available to the borrower that can be drawn upon as needed. The unused portion of the line of credit may grow over time, depending on the product's terms.
This refers to the amount of cash available to the borrower at closing after all liens and closing costs have been paid. Depending on the reverse mortgage product and the borrower's choices, this could be a lump sum or part of a structured payment plan.
Glossary
Inclusion of the reverse mortgage calculator on this page should not be construed as advice or recommendations regarding the appropriateness of a reverse mortgage to a viewer’s individual circumstances. If website visitor makes use of the reverse mortgage calculator contained within or linked to this site, he or she acknowledges that the information resulting from the use of any such calculator is intended to be used for illustrative and educational purposes only and is not, and should not be construed, as the receipt of, or a substitute for, personalized individual advice from City First Mortgage Services, LLC or from any investment professional. Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the adviser’s services will vary based upon a variety of factors, such as the client’s investment, tax, and financial circumstances and overall objectives. Neither personalized nor tailored services should be construed as a guarantee of a particular outcome. Past performance does not guarantee future results. All investing comes with risk, including the risk of loss.
Equal Housing Lender
Licensed by Department of Business Oversight under California Residential Mortgage Lending Act
© 2024 — City First Mortgage Services
Reverse Mortgage Calculator
FHA HECM Lending Limit 2024 - $1, 149, 825
All the math is based off a maximum home value of $1, 149, 825
Platinum 4.0 is our Jumbo Option - No limit on home value starting at $1.2M
Glossary:
This refers to the specific type of reverse mortgage product being offered. Different products may have varying features, benefits, and terms that cater to different needs.
The initial interest rate on the reverse mortgage loan. This rate is often adjustable and can change over time based on the loan's index and margin.
This is a 10 year projected interest rate average used to calculate the principal limit of a reverse mortgage (Or what a borrower qualifies for). It's not the rate at which interest accrues on the loan balance. Instead, it's used to estimate the loan's future balance and the amount of home equity that might be left over time.
Mortgage Insurance Premium rate. For HECM loans, this insurance is required by the FHA and protects both the lender and borrower. The MIP ensures that if the company managing your account (the lender) goes out of business, the government will step in and make sure you have continued access to your loan funds as this loan is guaranteed. It also guarantees that you will never owe more than your home is worth.
The appraised value of your home. This is used to determine the maximum amount you can borrow with a reverse mortgage.
The maximum amount you can borrow through a reverse mortgage. It's based on the youngest borrower's age, the home's value, and the expected interest rate.
The amount of money from the reverse mortgage that will be used to pay off existing liens or mortgages on the property. This ensures the reverse mortgage is in the first lien position.
The amount of money available to the borrower from the reverse mortgage after paying off existing liens and closing costs. This can be accessed through various payment options depending on the product chosen.
If the reverse mortgage product includes a line of credit option, this is the amount available to the borrower that can be drawn upon as needed. The unused portion of the line of credit may grow over time, depending on the product's terms.
This refers to the amount of cash available to the borrower at closing after all liens and closing costs have been paid. Depending on the reverse mortgage product and the borrower's choices, this could be a lump sum or part of a structured payment plan.
Inclusion of the reverse mortgage calculator on this page should not be construed as advice or recommendations regarding the appropriateness of a reverse mortgage to a viewer’s individual circumstances. If website visitor makes use of the reverse mortgage calculator contained within or linked to this site, he or she acknowledges that the information resulting from the use of any such calculator is intended to be used for illustrative and educational purposes only and is not, and should not be construed, as the receipt of, or a substitute for, personalized individual advice from City First Mortgage Services, LLC or from any investment professional. Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the adviser’s services will vary based upon a variety of factors, such as the client’s investment, tax, and financial circumstances and overall objectives. Neither personalized nor tailored services should be construed as a guarantee of a particular outcome. Past performance does not guarantee future results. All investing comes with risk, including the risk of loss.
