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Reverse Mortgage Loans

A great financing option for homeowners who are 62 and older.

At Northwest Alternative Mortgage, we work with borrowers who don't fit neatly into the boxes required by conventional lenders. For homeowners who are 62 and older, a reverse mortgage loan may be a good financing option for you.  

A Home Equity Conversion Mortgage (HECM) allow homeowners to borrow money by using their home as a security for the loan. Typically, reverse mortgage loans do not require a monthly payment.

Reverse Mortgage Loans

Reverse Mortgage Loan Features

  • Eligibility: To qualify for a reverse mortgage, the homeowner must be at least 62 years old and should have sufficient equity in their home.

  • Home Ownership: The borrower must own and occupy the home as their primary residence. Rental properties and vacation homes are not eligible for reverse mortgages.

  • Loan Repayment: Unlike traditional mortgages, with a reverse mortgage, repayment is not required until the borrower no longer uses the home as their primary residence. This typically occurs when they move out of the home or pass away. At that point, the loan becomes due, and the borrower's estate or heirs may choose to sell the home to repay the loan.

  • Loan Amount: The amount a borrower can receive from a reverse mortgage depends on factors such as the borrower's age, the home's appraised value, the current interest rates, and the loan program chosen. 

  • Payment Options: Reverse mortgage borrowers have several options for receiving funds. They can choose a lump sum payment, regular monthly payments, a line of credit, or a combination of these options.

  • Borrower Responsibilities: Even with a reverse mortgage, the borrower remains responsible for property taxes, homeowner's insurance, and general maintenance of the home. Failure to meet these obligations could result in defaulting on the loan.

  • Non-Recourse Loan: Reverse mortgages are considered non-recourse loans, which means the borrower (or their estate) is not personally liable for repayment beyond the value of the home. If the loan balance exceeds the home's value, the Federal Housing Administration (FHA) insurance associated with most reverse mortgages covers the difference.

  • Counseling Requirement: Before obtaining a reverse mortgage, borrowers are required to undergo counseling from a HUD-approved housing counseling agency. This counseling helps ensure that borrowers fully understand the terms and implications of a reverse mortgage.

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Conventional vs Reverse Mortgage Loans

NOTE: It's important to note that the specifics of conventional Non-QM mortgage loans can vary depending on many factors. This chart provides a general overview of the key differences between the two types of loans. Contact us at 503-343-7999 to learn more about the lending solutions we offer!

Contact Us

Lending Office

5335 Meadows Rd, Suite 388, Lake Oswego, OR 97035

Phone

Direct Line: 503-343-7999 

Office Hours

Mon - Fri

9:00 am – 5:00 pm

Email

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