Details of HUD Regulated Reverse Mortgage Program

A Reverse Mortgage is a financial tool to enable homeowners 62 and over to access the home equity of their primary residence. There are no income and no credit qualifications. No repayment of loan is required as long a homeowner lives in their home. The homeowner retains full title of their property.

Requirements

Youngest person on deed must be 62 or older at time of closing.

Must be the primary residence.

Must have a Certificate of Completion of Counseling issued by a third party, HUD certified, and independent counseling agency. (See Counseling below).

Accessible Equity

The maximum loan amount is determined by the home’s value, age of the youngest homeowner on deed and the HUD established expected interest rate.

Counseling

All homeowners on deed must receive counseling from a HUD certified independent third-party counselor. This free counseling can be via phone and when accomplished, (about one hour) the applicant will be issued a certificate of completion. This certificate (the original) must be given to the Reverse Mortgage Originator at time of application. Contact the Reverse Mortgage Specialist at 1 888-742-4714 for counselor information.

Funding Options

Tenure - Receive monthly payments for as long as you live in your home.

Term - Receive monthly payments for a predetermined period of years, as long as you are still living in your home.
Line of Credit - Access funds when desired in minimum amounts of $500.00 per request. Maximum draw is the full line of credit remaining at time of request. Line of credit remaining grows at the interest rate established at closing.
Lump Sum - Cash distributed to homeowner at closing.
Combination - Combination of any of the above.

Closing Costs

Closing costs are incorporated in the loan (not out of pocket). They include: appraisal, title insurance, origination fee, mortgage insurance premium, recording fees, and other pass through costs relating to closing. (Outlined in a Good Faith Estimate at the time of application).

Note Rate

The interest rate will vary depending on the Reverse Mortgage product chosen and the index value. All products have adjustable rates and life time caps on these rates.

Tax-Free

Funds from a Reverse Mortgage are not classified as income, and do not affect Social Security Benefits. Medicaid and SSI programs may be affected. Check with program directors and your tax advisors.

Repayment

A Reverse Mortgage becomes due and payable only when the last borrower no longer occupies their home. The loan balance consists of the financed closing costs, the principal advanced and accrued interest. The remaining equity belongs to the borrower or their heirs. Repayment is the lesser of the loan balance or fair market value of the home when sold.

Documentation

Documentation needed at time of application:

Original counseling certificate.
Check to FIF Corp. of $300.00. (deposit on appraisal costs)
Copies of driver license, social security card and birth certificate.
Copy of your current home owner’s insurance declaration page.
If deceased and spouse is still on the title, a copy of a Death Certificate would be needed.
Copies of latest statements on any current liens against the property.

To further discuss a Reverse Mortgage please call:

Doug Tredinnick 973 432-1661

First Interstate Funding Corp.

Licensed by the NJ Dept of Banking & Insurance, Licensed by the PA Dept of Banking, Licensed NY Banker – NYS Banking Dept, Licensed by the CA Dept of Corporations under the Finance Lenders Law, Georgia Residential Mortgage Licensee, MA Lender License #MC2193, TX Registered Mortgage Banker, Licensed by the Virginia State Corporation Commission MLB1042. Also licensed in CT, DE, FL, and NC. Authorized in CO, MO, and SC. First Interstate Financial Corp is an equal housing opportunity lender. Licensed by the NJ Department of Banking and Insurance

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Reverse Mortgages