Were you interested in getting a reverse mortgage, but did not qualify due to limiting government regulations? We may have a new option for you. We are pleased to announce the launch of our newest reverse mortgage product, HELO! Short for Home Equity Loan Optimizer, HELO is only available at One Reverse Mortgage and makes the reverse mortgage a more inclusive option for many who may not qualify for a traditional HECM.
What is HELO?
HELO is a private reverse mortgage product available to homeowners who are 62 and older and have enough equity in their home. It is similar to a traditional home equity conversion mortgage, or HECM, but does not come with the government limitations that may exclude some clients.
What are the Benefits of HELO?
Our new product makes the reverse mortgage available to more people. With HELO, many high-value homes, condominiums, and solar-panel homes may qualify for a reverse mortgage. Along with that, there is no MIP required and the amount clients may receive in proceeds is up to $4 million. That means many clients can receive more money at lower costs than a traditional HECM. And speaking of receiving money, clients who get HELO will have 100% of their funds available to them at closing.
How Can You Get HELO?
The process for getting a private reverse mortgage is the same as getting a HECM. You will still need to go through a required counseling session and there is still a financial assessment. However, there may be some differences within each step. For example, the counseling session will include information on the private reverse mortgage and a specific private mortgage certificate is required, instead of a HECM certificate. There may also be differences in the financial assessment. For example, there are no LESAs (Life Expectancy Set Asides) available with the private product and, while credit score is not yet a requirement for a HECM, you must have a minimum median qualifying credit score of 640.
Is HELO Right for You?
We are the first to say that a reverse mortgage – HECM or HELO – is not right for everyone. If you are seriously thinking about getting this loan, we recommend speaking to one of our licensed specialists. They can speak with you about your financial needs and goals and see if you are a good fit for this loan. They can also answer your questions, provide more information on this exciting new product, and see if you qualify. We also recommend you speak to your financial advisor.