Reverse Mortgages

A reverse mortgage is a unique type of home equity loan available only to seniors age 62 or older, who have sufficient equity in their homes. This loan allows a borrower to obtain cash without ever having to make a monthly payment on the loan. It is not uncommon for seniors to need cash for home improvements, urgent medical expenses, in-home care, and even normal day-to-day expenses. Mortgage Team 1, Inc offers reverse mortgages to seniors throughout Mobile and the surrounding Alabama areas.

Traditional home equity loans require the borrower to make a monthly payment to their lender. With the reverse mortgage, no payments are made until the borrower no longer occupies the home as their primary residence. Instead, the lender makes a payment to the borrower each month which is how the reverse mortgage gets its name.

It is not uncommon for seniors and their families to have questions and concerns regarding reverse mortgages. At Mortgage Team 1, Inc, we aim to educate Mobile seniors on reverse mortgages. As a local Mobile company, we are able to meet face-to-face with clients to provide the information and support needed when deciding if a reverse mortgage is the right choice for you.

Home Equity Conversion Mortgage (HECM)

A Home Equity Conversion Mortgage (HECM) is the Federal Housing Administration’s (FHA) reverse mortgage product. HECMs are the only federally insured reverse mortgage product available and therefore make up the large majority of the reverse mortgages in the US. Applicants will need to meet a few requirements to be eligible for the program.

Mobile HECM Borrowers must:

  • Be at least 62 years of age
  • Occupy the home as their primary residence
  • Have a low mortgage balance or own their home outright
  • Not be delinquent on any federal debt
  • Be able to meet financial obligations including property taxes, insurance, Homeowner Association fees, etc.
  • Participate in a reverse mortgage information session given by a counselor approved by the U.S. Department of Housing and Urban Development (HUD).

The FHA also requires that each borrower’s property meet specific standards and flood requirements.

There are a few different payment options available depending on the needs of the borrower. If a fixed-rate mortgage is chosen, only a single disbursement lump sum payment will be available. Additional payment plans are available for those with adjustable-rate reverse mortgages including:

  • Line of Credit
  • Term – equal monthly payments for a set number of months
  • Tenure – equal monthly payments as long as one borrower occupies the property
  • Modified Tenure – line of credit and tenure combination
  • Modified Term – line of credit and term combination

Mortgage Team 1, Inc has over 20 years of experience assisting seniors and their families throughout Mobile with all their reverse mortgage needs. If you have any questions about Mobile reverse mortgages or if you are ready to apply for your reverse mortgage, contact at any time, even after hours!