Reverse Mortgages

A reverse mortgage, like a traditional mortgage, allows homeowners to borrow money using their home as security for the loan.  Also like a traditional mortgage, when you take out a reverse mortgage, the title to your home remains in your name. The Reverse allows a homeowner to utilize the dormant equity in their home and turn it into an active asset; without having to qualify as with a traditional mortgage.

However, unlike a traditional mortgage, borrowers don’t make monthly mortgage payments on a Reverse Mortgage. The loan is repaid when the borrower no longer permanently lives in the home.

Diamond Residential Mortgage Corporation offers the FHA insured Home Equity Conversion Mortgage (HECM), for refinance and purchase; helping those 62 and older utilize the equity in their home or to purchase the “right-sized” home which will better fit their lifestyles.

Pre-qualify Contact a loan officer
Reverse Mortgages

To be eligible

  • Be 62 years of age or older
     
  • Have 55% or greater percentage of equity in the home.
     
  • Occupy the property as your principal residence
     
  • Not be delinquent on any federal debt
     
  • Participate in a consumer information session given by an approved HECM counselor
     
  • Be able to continue to pay real estate taxes and homeowner’s insurance.
Pre-qualify

Pros of a Reverse Mortgage

  • Eliminate monthly mortgage payments*
     
  • Increase purchasing power
     
  • Retain savings/profit from home for life expenses.
     
  • Right-size to a smaller, lower maintenance home
     
  • Buy a home closer to family or friends
     
  • Lower their cost of living during retirement
     
  • Enjoy carefree living in a senior housing community

 

*The borrower must live in the home as their primary residence, continue to pay required property taxes, homeowner’s insurance and maintain the home.

 

Cons of a Reverse Mortgage

  • Higher fees and interest rates compared to traditional mortgages
     
  • Limited amount of money that may not cover all expenses
     
  • Complex and difficult to understand
     
  • Repayment required upon selling or moving out of the home
     
  • Potential financial burden for heirs
     
  • May impact eligibility for government programs

 

Eligible properties

  • Single family
     
  • 2-4 units, as long as one unit is the borrower’s primary residence
     
  • FHA Approved Condominiums and PUDs
     
  • Manufactured Homes meeting FHA Guidelines
     

Contact one of our knowledgeable loan specialists who can help guide you through our extensive suite of loan products for a mortgage solution tailored to meet your specific needs.