Reverse Mortgage Programs

This is a very exciting time for Potential Reverse Mortgage Borrowers! Currently there is almost 3 Trillion Dollars in Senior owned home equity in the United States. This has proven to be too much for either the lenders or the homeowners to ignore, and the increased Popularity of the Reverse Mortgage is proof of this. As with all vibrant markets, this leads to increased competition, and THAT is always a benefit to the customer! New Reverse Mortgage programs are being approved and introduced as never before, offering senior homeowners more choices and options.

CALIFORNIA MORTGAGE CONSULTANTS is committed to the Reverse Mortgage Market and we are a correspondent lender for several Major Banks so that we can offer our clients the widest variety of Reverse Mortgage Choices. We are committed to showing all our clients all of their available options. If you have spoken with another lender, or are in the process with another lender it’s never too late to ask about your Reverse Mortgage options.( some lender’s offer only one Reverse Mortgage option and are therefore hesitant to let their clients know what other options may exist for them).

Home Equity Conversion Mortgage (HECM) reverse mortgages

A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage. Ninety-five percent of all reverse mortgages are HECMs. The Federal Housing Administration (FHA) sets limits on how much a HECM reverse mortgage lender may lend you—based on your age, your home's value and location—and what your total loan costs will be. HECM loans give you a wide choice in how you may receive the cash from the reverse mortgage. HECM loans generally provide the larger loan advances than other reverse mortgages. [An exception is Financial Freedom's Cash Account Plan reverse mortgage which may offer cash advance opportunities significantly higher than other reverse mortgage products.]

Financial Freedom Cash Account Advantage® Plan

Financial Freedom's proprietary Cash Account Advantage Plan reverse mortgages have been designed especially for senior with substantial home equity or higher-valued homes. No other reverse mortgage lender offers a jumbo loan product comparable to the Cash Account Advantage Plan and its options.

Financial Freedom Cash Account Advantage Plan reverse mortgages have virtually no limit on home value or the amount of the loan. As a result, the amount of money available to the homeowner may be substantially greater with a Cash Account Advantage Plan reverse mortgage than with other options.

Cash Account Advantage Plan features a number of options that allow you to maximize the benefits depending on your unique needs, including eliminating upfront fees and closing costs. Currently there are three available options: the Credit Line Option, the Combo Option, and the Cash Out Option. With all Cash Account Advantage Plan reverse mortgage options, the rate is reset semiannually; there is also a lifetime interest rate cap. A servicing fee is automatically financed on the account each month; there is no such fee in Illinois and Maryland.

In addition, there is no equity or appreciation sharing and no maturity fee.

Available for all Cash Account Options, Equity Choice Feature allows the borrower to limit the loan obligation to a stated percentage of the full market value of the home resulting in the amount of the loan or line of credit being less than the amount for which the borrower otherwise qualifies. Borrowers may choose to protect a minimum of 10% and a maximum of 50% of their home equity. This permits greater flexibility assuring a percentage of equity remaining to benefit the borrower or heirs upon loan maturity.

Fannie Mae Home Keeper® Reverse Mortgage

A Home Keeper® reverse mortgage is Fannie Mae's conventional market alternative to the Home Equity Conversion Mortgage (HECM). It is a government-sponsored enterprise program and works like a HECM loan in many ways. However, a Home Keeper® reverse mortgage addresses a few needs that are not met by HECM loans, such as individuals with higher property values, condominium owners, and seniors wishing to use a reverse mortgage to purchase a new home.

The current (2006) lending limit with a Home Keeper® reverse mortgage is $417,000.