Frequently Asked Questions
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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.
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READY TO GET STARTED?
The reverse mortgage borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the borrower does not meet these loan obligations, then the loan will need to be repaid.
For Reverse Loans. When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.
Not tax advice. Consult a tax professional.
Schedule your appointment with one of our reverse mortgage experts:
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What can a HECM Do For You?
Increased Financial Versatility
Remove Monthly Mortgage Obligations
Loan Proceeds Exempt from Income Tax
Remain in your Home
Substitutes your current mortgage and remains repayable only upon your departure from the residence. This opens up your previous monthly payment as accessible cash.
Utilize these funds according to your preferences to address immediate needs, plan for the future, and accomplish your goals.
Get a one-time sum, receive monthly cash draws, or set up a line of credit without the need for monthly payments.
Utilize your accumulated housing wealth to live comfortably and sustain your long-term standard of living.
HECM Highlights
.png)
Supplement retirement
income
Eliminate monthly
mortgage payments
Fund healthcare
expenses
Cover home
renovation costs
Provide financial cushion for emergencies
Support leisure and travel activities
Increase cash flow for daily living expenses
Facilitate debt
consolidation
.png)
Eliminate monthly mortgage payments
HECM Highlights
Supplement retirement income
Cover home renovation costs
Fund healthcare expenses
Facilitate debt consolidation
Increase cash flow for daily living expenses
Support leisure and travel activities
Provide financial cushion for emergencies
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)
READY TO GET STARTED?
The reverse mortgage borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the borrower does not meet these loan obligations, then the loan will need to be repaid.
Not tax advice. Consult a tax professional.
Schedule your appointment with one of our
reverse mortgage experts:
What can a HECM
Do For You?
Substitutes your current mortgage and remains repayable only upon your departure from the residence. This opens up your previous monthly payment as accessible cash.
Remove Monthly Mortgage Obligations
Utilize these funds according to your preferences to address immediate needs, plan for the future, and accomplish your goals.
Loan Proceeds Exempt from Income Tax
Get a one-time sum, receive monthly cash draws, or set up a line of credit without the need for monthly payments.
Increased Financial Versatility
Utilize your accumulated housing wealth to live comfortably and sustain your long-term standard of living.
Equal Housing Lender
Licensed by Department of Business Oversight under California Residential Mortgage Lending Act
© 2024 — City First Mortgage Services
HECM Highlights
.png)
Supplement
retirement income
Eliminate monthly
mortgage payments
Fund healthcare
expenses
Cover home
renovation costs
Provide financial cushion for emergencies
Support leisure and
travel activities
Increase cash flow for daily
living expenses
Facilitate debt
consolidation
What can a HECM Do For You?
Increased Financial Versatility
Remain in your Home
Remove Monthly Mortgage Obligations
Loan Proceeds Exempt from Income Tax
Substitutes your current mortgage and remains repayable only upon your departure from the residence. This opens up your previous monthly payment as accessible cash.
Utilize these funds according to your preferences to address immediate needs, plan for the future, and accomplish your goals.
Get a one-time sum, receive monthly cash draws, or set up a line of credit without the need for monthly payments.
Utilize your accumulated housing wealth to live comfortably and sustain your long-term standard of living.
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.
READY TO GET STARTED?
The reverse mortgage borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the borrower does not meet these loan obligations, then the loan will need to be repaid.
Not tax advice. Consult a tax professional.
Schedule your appointment with one of our
reverse mortgage experts:
Demystifying Reverse Mortgages: Separating Myths from Facts
Maximizing Your Financial Flexibility with the Reverse Mortgage Line of Credit Growth Feature
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