Loan Options

Option 1

Adjustable Rate HECM

The Adjustable Rate HECM is an option that provides financial flexibility. The Adjustable Rate HECM can be utilized in the following ways:

  • Subject to an Initial Disbursement Limit, you can receive the loan proceeds from a line of credit, monthly disbursements, lump sum or a combination of the three. Using the proceeds from your loan could allow you to delay other retirement benefits* and investments, which allows them more time to potentially increase in value.
  • You are not required to take any money at the time you start your line of credit. The amount of available funds can grow over time, giving you more money to access in the future.

Option 2

Fixed Rate HECM

The Fixed Rate HECM disburses money in one lump sum and locks the interest rate in place at the time of closing. The interest rate is the same for the duration of the loan. This loan option is typically used to:

  • Pay off mortgage balances, property liens, medical bills, and required home repairs.
  • Pay for living expenses so your other investments and benefits have more time to potentially grow in value.*

Option 3

HECM for Purchase

Using a reverse mortgage, you can purchase a new home with no required monthly mortgage payment. Please remember you are still responsible for property taxes, homeowner’s insurance, and maintaining the property. With a reverse mortgage, you are not required to repay the loan until it becomes due and payable. The loan generally becomes due and payable if you (or an eligible non-borrowing spouse during a deferral period) move, sell the property, or pass away. You remain the owner of the home and you (or an eligible non-borrowing spouse during a deferral period) must continue to pay property taxes, insurance fees, and home maintenance costs. Here are some things to know about this loan:

  • Many people use this program to buy a home that is closer to family, in a warmer climate, or better suits their physical needs.
  • The down payment is, in part, determined by the youngest borrower or eligible non-borrowing spouse. The older that person is, the less the borrower would potentially need to put down.

* Please consult your financial advisor.

Option 4

Home Equity Loan Optimizer (HELO)

The Home Equity Loan Optimizer, or HELO, was created by One Reverse Mortgage to provide access to home equity for those who may not qualify for the FHA loan. Due to government regulations, housing restrictions, and lending limits, some people are unable to get an FHA reverse mortgage. HELO may be the perfect solution! Here are a few key features:

  • This loan has higher lending limits and no Mortgage Insurance Premium requirement. That means you can access more money at lower costs.
  • There are no property restrictions. If you live in a high value home, condominium, home with solar panels, or any other residence with features that do not qualify for an FHA HECM, you still have the ability to qualify for our new HELO reverse mortgage product.
  • You may take 100% of your funds from the moment you close your loan. There is no limit on how you choose to use your funds.
  • You can consolidate debts as part of the mortgage process. This can help you qualify for this new loan.

For more information on HELO and to see if you qualify, call our licensed specialists today!