Types of Reverse Mortgages

What are the different types of reverse mortgages available in Salem Oregon?

Yes. Almost all reverse mortgages at this time are insured by the Federal Housing Administration (FHA), within its Home Equity Conversion Mortgage (HECM) program. If you ever apply for a HECM mortgage loan in Salem, you may pick from the following choices:

Payment of mortgage loan funds. You can receive money as a line of credit, monthly payment, a combination of these, or a lump sum.

Interest rate. You may choose between a fixed rate and an adjustable rate. Fixed interest rates are only available with the one time settlement option.

The reverse mortgage program offers 2 special-purpose mortgage loan options for special scenarios:

HECM for Purchase (H4P). HECM for Purchase helps you buy a house in Salem Oregon utilising funds from the reverse mortgage loan.
HECM Loan refinancing. HECM Refinancing allows for one HECM loan to be converted into another HECM loan. The common purpose of refinancing a reverse mortgage in Salem is to get a lower rate, if one is obtainable, or even to borrow more money, if your home appraised value has grown.

Tip:

Getting a credit line or monthly installment will increase the amount of money that you may borrow overall.

Non-HECM Reverse Mortgages

Single-purpose reverse mortgages may also be provided by some Oregon and local governments and non-profit groups. They are used just for the purpose specified by the lender (such as home maintenance or real eOregon taxes). They may only be available in some areas for property owners with very low to modest income. These non-HECM reverse mortgages, if available in Salem Oregon, won’t be federally insured.

Quite a few lenders provide proprietary reverse mortgages for seniors in Salem, that are not federally insured. These are typically specifically for borrowers with higher house values.