Nationwide Reverse Mortgage Loans for Homeowners

Nationwide reverse mortgage loans are designed to help homeowners age 62 and older tap into their home's equity.

Homeowners can borrow up to 80% of their home's value, depending on their age and the location of their property.

To qualify, homeowners must live in the property as their primary residence and have sufficient equity in their home.

A reverse mortgage can provide a steady stream of income, which can be used for living expenses, paying off debt, or investing in other assets.

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Reverse mortgage basics are often misunderstood, but they're actually quite straightforward. Many seniors who don't qualify for traditional financing are eligible for a reverse mortgage.

Homeowners still retain title and ownership to their homes during the life of the loan. As long as the borrower continues to live in and maintain the home and property taxes and homeowners insurance are paid, the loan cannot be called due.

There are no restrictions on how the cash proceeds from the reverse mortgage can be used. Borrowers can use them for virtually any purpose, such as paying off debt, helping their kids, or having a financial reserve.

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Most seniors prefer to be free of monthly mortgage payments, which allows them to maintain their existing quality of life and build their savings. Without monthly mortgage payments, many homeowners find they can enjoy their golden years with more financial security.

Reverse mortgage lenders put no time limit on how long the borrower(s) can stay in their homes. Homeowners still own the property, and lenders cannot evict them as long as the borrower continues to live in and maintain the home, and property taxes and homeowners insurance are paid.

The loan generally doesn't affect regular Social Security or Medicare benefits. However, if you're on Medicaid, any reverse mortgage proceeds you receive would count as an asset and could impact Medicaid eligibility.

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To be eligible for a nationwide reverse mortgage, you'll need to meet certain requirements. You must be at least 62 years old to qualify.

One of the key requirements is owning the property outright or having paid down a significant amount. This means you'll need to have equity in your home.

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You'll also need to occupy the property as your principal residence. This is a non-negotiable requirement.

Not being delinquent on any federal debt is also essential. This includes outstanding loans, taxes, and other financial obligations.

To ensure you understand the process, you'll need to participate in a consumer information session given by a HUD-approved HECM counselor. This is a mandatory step.

Here are the key borrower requirements in a concise list:

You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs reduces the net loan amount available to you.

The HECM loan includes several fees, such as mortgage insurance premiums (initial and annual), third party charges, origination fee, interest, and servicing fees. We can discuss which fees are mandatory.

These fees can add up, but you can finance them to avoid paying out of pocket. This means you'll have less money available from the loan, but it can be a more manageable option for some people.

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Financial Requirements can be a major hurdle for many homebuyers. Income, assets, monthly living expenses, and credit history may be verified to ensure you're a responsible borrower.

Your ability to pay for real estate taxes and insurance premiums on time is also crucial. Timely payment of hazard and flood insurance premiums may be verified, so make sure you have a plan in place to cover these costs.

The amount you may borrow will depend on your credit score, but not directly as you might think. The truth is, your credit score is not a factor in determining the amount you can borrow with a HECM loan.

The age of the youngest borrower is a key consideration, as it can affect the amount you qualify for. This is because the youngest borrower's age impacts the loan's term and the amount of equity you can tap into.

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The current interest rate will also play a role in determining the amount you can borrow. This is because the interest rate can affect the loan's value and the amount you can qualify for.

The lesser of the appraised value or the HECM FHA mortgage limit of $625,500 will also be a factor in determining the amount you can borrow. This means that if your home's appraised value is lower than the mortgage limit, you'll qualify for the lower amount.

You'll also need to choose between the HECM Standard and HECM SAVER options, which will impact your Initial Mortgage Insurance Premium.

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You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. This means you won't have to pay for them out of your pocket, but it does reduce the net loan amount available to you.

The HECM loan includes several fees, such as mortgage insurance premiums (initial and annual), third party charges, origination fee, interest, and servicing fees. Some of these fees are mandatory.

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You can finance most of the costs of a HECM, which can be paid from the loan proceeds. This option reduces the net loan amount available to you.

Here's a breakdown of some of the fees included in a HECM loan:

We can discuss which fees are mandatory.

Reverse mortgages offer a unique set of benefits that set them apart from other loan options. Seniors who don't qualify for traditional financing are often eligible for a reverse mortgage.

Homeowners retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the borrower continues to live in and maintain the home, property taxes and homeowners insurance are paid, the loan cannot be called due.

Borrowers can use the cash proceeds from the reverse mortgage for virtually any purpose, but should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet, or to have a financial reserve.

There are no restrictions on how long the borrower(s) can stay in their homes, and lenders cannot evict them as long as the borrower continues to live in and maintain the home, and property taxes and homeowners insurance are paid.

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Many seniors who don't qualify for traditional financing are eligible for a reverse mortgage.

Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time.

As long as the borrower continues to live in and maintain the home and property taxes and homeowners insurance are paid, the loan cannot be called due.

The cash proceeds from the reverse mortgage can be used for virtually any purpose, such as paying off debt, helping kids, or making ends meet.

There are no restrictions on how the cash proceeds are used, but borrowers should be cautious of lenders attempting to cross sell other products.

Most seniors prefer to be free of monthly mortgage payments, which allows them to maintain their existing quality of life and build their savings.

A growing number of people who have no immediate need are taking out these loans to have a financial cushion for future expenses.

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Reverse mortgage lenders put no time limit on how long the borrower(s) can stay in their homes, as long as the property taxes and homeowners insurance are paid.

Regular Social Security or Medicare benefits are generally not affected by a reverse mortgage, but Medicaid eligibility may be impacted.

Borrowers are required to work with independent, third party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities.

If the borrower or their estate wants to retain the property, the balance must be paid in full, but there is no recourse if the HECM loan balance exceeds the home's value at maturity.

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A reverse mortgage is a unique approach to leveraging your home's value in retirement. By flipping the traditional mortgage model, you can access a portion of your home's equity to supplement your income.

You can use the funds to pay off any existing mortgages, receive a lump sum, monthly payments, or a combination of both. This flexibility allows you to tailor the distribution to your individual preference.

There are some stipulations, however. Homeowners must continue paying property taxes, insurance, and maintain their home to keep the loan in good standing. This ensures the loan remains viable and doesn't become a burden.

Here's a quick rundown of the key differences between a reverse mortgage and a regular mortgage:

The loan becomes due when you sell the property, move out, or pass away. In the latter case, heirs have options to retain the property or sell it to settle the loan.

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Nationwide Equities Corporation has introduced a new private reverse mortgage product called "EquityPower".

This product allows borrowers to access greater proceeds than the traditional Home Equity Conversion Mortgage (HECM) allows.

EquityPower is a fixed-rate, lump-sum product that's initially available in California, Texas, New Jersey, and Florida.

Nationwide plans to expand the product's presence in additional states in the near future.

EquityPower is available to borrowers 60 years of age or older.

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The company touts the efficiency of EquityPower in comparison with comparable HECM offerings.

It's also a valuable tool for condominium owners who may have been rejected from other reverse mortgage products.

Nationwide's leadership sees the product's launch as a way to help the company control and grow its pipeline and presence in the reverse mortgage product landscape.

Nationwide Equities ranks at number 20 on a list of the top 100 reverse mortgage lenders by wholesale and retail HECM volume.

The product will be initially offered to Nationwide's retail staff, with plans to roll it out to select wholesale partners in the near future.

Nationwide Equities offers a Help Desk to assist with timely closings.

The company will also add product features such as a line of credit option in the near future.

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The loan process for a nationwide reverse mortgage is a straightforward one. You'll need to meet with a HUD-approved counselor to understand the implications of a reverse mortgage loan.

Researching reverse mortgage loans is the first step, where you'll speak with a mortgage professional about your options and familiarize yourself with the different types of loans available. You'll pick the one that suits you best.

You'll need to fill out the reverse mortgage loan application, which will be securely stored and transmitted. Independent HUD counseling typically costs $125, and you can get a list of HUD-approved counselors in your area.

A licensed appraiser will determine if your house needs any repairs, and any problems must be fixed before you can be approved. Your application will then be processed and underwritten.

Once you're approved, your loan will enter closing, where you'll review the terms and sign the paperwork. After that, you'll have three business days to cancel the loan.

Here are the steps to get a reverse mortgage loan in more detail:

Your reverse mortgage loan will become due under certain circumstances, including the homeowner's death, sale of the home, or failure to maintain insurance or property taxes.