Could a Reverse Mortgage Loan be right for you?
Origin SC offers reverse mortgage counseling which is required when obtaining a reverse mortgage loan. Read more about Reverse Mortgage Loans & our Reverse Mortgage Counseling Program below.
A reverse mortgage is a unique loan that enables senior homeowners, 62 years of age and older, to convert part of their home equity into tax-free income without having to sell their home, give up the title, or make a monthly mortgage payment while living in their home. In order to receive a reverse mortgage loan, the senior homeowner is required to complete reverse mortgage counseling.
We are a HUD-approved housing counseling agency. Read more about the Reverse Mortgage Counseling process in our FAQs.
To fill out an intake form for a counseling session, click HERE
Or to schedule an appointment, please call 843.628.4399 or email us.
- What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, reverse mortgage borrowers do not have to repay the loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage. You can also use a reverse mortgage to purchase your primary residence if you are able to use cash on hand to pay the difference between the reverse mortgage proceeds and the sales price plus closing costs for the property you are purchasing.
- Can I qualify for FHA’s HECM reverse mortgage?
The Federal Housing Administration’s (FHA) reverse mortgage program, also called HECM (Home Equity Conversion Mortgage) program, is the only reverse mortgage insured by the U.S. Federal Government. To be eligible for the FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, have the financial resources to pay ongoing property charges including taxes and insurance, and you must live in the home.
- Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance?
Yes. You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.
- What types of homes are eligible?
To be eligible for the FHA HECM, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.
- What are the differences between a reverse mortgage and a home equity loan?
With a second mortgage, or a home equity line of credit, borrowers must make monthly payments on the principal and interest. A reverse mortgage is different, because it pays the homeowner – there are no monthly principal and interest payments. With a reverse mortgage, one is required to pay real estate taxes, utilities, and hazard and flood insurance premiums.
- Will we have an estate that we can leave to heirs?
When the home is sold or no longer used as your primary residence, the cash, interest, and other HECM finance charges must be repaid. All proceeds beyond the amount owed belong to your spouse or estate. This means any remaining equity can be transferred to heirs. No debt is passed along to the estate or heirs.
- How much money can I get from my home?
The amount varies by borrower and depends on:
- Age of the youngest borrower;
- Current interest rate;
- Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and
- Initial Mortgage Insurance Premium.
- If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow.
- Should I use an estate planning service to find a reverse mortgage lender? FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA-approved lender. You can locate a FHA-approved lender by searching online at www.hud.gov or by contacting one of our reverse mortgage counselors.
- What is the cost to receive reverse mortgage counseling?
A non-refundable one-time fee of $150 for counseling is payable at time of booking an appointment. A fee of $25 will be paid to the attorney at closing if you proceed with obtaining a reverse mortgage.