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Below is a quick overview of our loan options. We encourage you to call us and we will explain how a reverse mortgage may work for you.
Adjustable rate loan: The adjustable rate HECM is the most flexible reverse mortgage plan. This loan adjusts based on the LIBOR (London interbank offer rate) index. With this plan funds may be received by the homeowner in the form of a lump sum, monthly payments, a line of credit that may be used on demand, or any combination of these. This plan has several important features:
The monthly payment amount may be changed at any time. The homeowner may specify a fixed payment amount for the entire time of occupancy of the home, or a fixed dollar amount, which may last for the entire time of occupancy or for a shorter period, depending on the total equity available to the homeowner
The available credit line amount increases each year based on the mortgage interest rate that is in effect at the time. Unlike traditional home equity lines of credit, a reverse mortgage credit line will never be cancelled or reduced unless the homeowner uses all available funds.
Fixed rate loan: The fixed rate HECM provides for a single distribution of loan proceeds. Part of this is used to retire any existing mortgage debt and the balance is disbursed to the homeowner at the closing of the reverse mortgage.
HECM for Purchase: The HECM for Purchase is a product designed to help senior homeowners purchase a new home that is better suited to their needs, while obtaining a reverse mortgage in the same transaction.
Proprietary Reverse Mortgage: For senior homeowners with high-valued properties hoping to access a greater amount of their equity, the HECM’s federally-set borrowing limit (based on the home’s value up to $636,150) can feel restrictive. To cater to this particular group of homeowners is another type of non-FHA reverse mortgage called the proprietary, or jumbo, reverse mortgage. This loan type is usually backed by the private lending companies and banks that develop these loans. They are not insured by the FHA and therefore do not require an insurance premium. Unlike the HECM, funds from a proprietary reverse mortgage loan are not available in multiple options of disbursement, like a monthly payment or line of credit. All funds are only available in one lump sum at closing. In general, interest rates can be higher than HECMs, but fees can be lower.
Alliance Reverse Mortgage 