Types of Reverse Mortgages

What are the different types of reverse mortgages available in Portland OR?

Yes. Most reverse mortgages today are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. Once you apply for a HECM mortgage in Portland, you may select from the following choices:

Payment of mortgage loan funds. You could get funds as a line of credit, monthly payment, a combination of these, or a lump sum.
Monthly interest rate. You may choose from a fixed rate and an adjustable interest rate. Fixed rates are only provided with the one time settlement option.

The reverse mortgage program also offers 2 special purpose mortgage options for specific situations:

HECM for Purchase (H4P). HECM for Purchase permits you to buy a property in Portland Oregon utilising funds from the reverse mortgage loan.

HECM Refinance loan. HECM Refinance will allow one HECM loan to be converted into another HECM loan. The most common cause of refinancing a reverse mortgage in Portland is to obtain a reduced rate, if one is obtainable, or borrow more funds, if your house appraisal value has increased.

Tip:

Getting a line of credit or monthly installment will increase the total which you could borrow overall.

Non-HECM Reverse Mortgages

Single-purpose reverse mortgages may also be offered by some local and Oregon governments and non-profit organizations. These are generally used just for the purpose specified by the lender (for example home repairs or property taxes). They will often only be accessible in some areas for homeowners with very low to modest income. These non-HECM reverse mortgages, if available in Portland Oregon, will not be federally insured.

A few loan companies provide proprietary reverse mortgages for seniors in Portland, which are not federally insured. These are generally suitable for consumers with higher property values.

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