Types of Reverse Mortgages

ORM has the widest variety of products in the industry. The following information is about some of our most commonly used products. Please contact us with any questions about these products or to recieve detailed quotes for your eligibility.

1. HECM- The HECM (Home Equity Conversion Mortgage) is the only Reverse Mortgage insured by the federal government. HECM loans are insured by FHA (Federal Housing Administration), which is a part of the U.S. HUD (Department of Housing and Urban Development). FHA tells HECM lenders how much they can lend you and also limits the loan costs. FHA also guarantees that lenders will meet their obligations.
   FHA-HECM- This plan provides lump sum cash out, line of credit or a monthly income for life or for a fixed term. You can also do a combination of all three.
   • Maximum Lending Limit- ranges from $172,632 to $362,790 depending on where the customer is located. (this adjusts annually)
   • Government Insured Program
   • Variable T-Bill interest rate plus margin is adjusted monthly (1.50 margin) or annually (3.10 margin).
   • Available balance in Line of Credit grows annually.
   • Monthly servicing fee is added to the loan balance.
   • Counseling is required by an approved HUD counselor.
     
     
2. Homekeeper (FNMA)- Fannie Mae's proprietary Reverse Mortgage Product is also designed to benefit the homeowner's 62 years of age or older. Product guidelines are below, the homekeeper program does slightly differ from the most popular HECM program.
   • Maximum Lending Limit0 $417,000 (adjusts annually)
   • Government Sponsored Enterprise Program.
   • Variable CD interest rate plus margin (3.40) is adjusted monthly.
   • A monthly servicing fee is added to the loan balance.
   • Counseling is required by an approved agency.
   • NO MIP charged on Homekeeper Reverse Mortgages
   • Line of credit has NO growth rate.
     
     
3. The Independence Plan (offered through Bank of America)- Designed for owners of higher value homes, The Independence Plan product provides more loan proceeds to borrowers, exceeding HECM and Home KeeperŪ federal loan limits. The Independence Plan functions similarly to the FHA Home Equity Conversion Mortgage (HECM) and Fannie Mae Home KeeperŪ reverse mortgage programs, but is funded by a third-party investor

   Unique to the marketplace, in many cases The Independence Plan provides senior borrowers with more available cash than any other plan currently on the market. Additionally, it allows for reduced closing costs with fewer restrictions than similar products currently offered. The Independence Plan is the only jumbo product that does not require borrowers to draw a set percentage at closing, giving greater independence for borrowers to use the funds as they see fit.