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Alan Ross
Senior Loan Officer
NMLS # 140180

After 14 years away from the mortgage business, I’m grateful to be back with Revolution Mortgage here in Arizona. With more than 30 years of experience, my focus is now helping seniors and families understand the FHA-insured HECM (reverse mortgage) and how it can improve retirement cash flow and financial security. While my business is based in Arizona, I’m always happy to be a resource for information, guidance, and education.

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If you are 55 and over, Retirement Resource Group wants to share with you how you may be able to convert part of the equity in your home to cash flow. Whether you desire money to finance the purchase of a new home, complete home improvements, pay off an existing mortgage, supplement your retirement income, or pay for healthcare expenses. Many older Americans are turning to HUD's Insured Home Equity Conversion Mortgage (HECM*).
*Reverse mortgages are available to homeowners 62 or older with home equity. They allow deferral of payment until the homeowner passes away, sells, or moves out. However, homeowners must continue paying taxes, insurance, maintenance, etc. Non-payment can result in loan default and home loss. FHA insured reverse mortgages have upfront and ongoing costs; consult your loan officer. These materials aren't endorsed by HUD, FHA, or any governing agency.

There are 3 different types of reverse mortgages:

HECM

(Home Equity Conversion Mortgage)

The only reverse mortgage insured by the U.S. Federal Government. The HECM enables borrowers to withdraw a portion of their home's equity. The amount that will be available for withdrawal varies by borrower. One borrower must be 62 years or older.

PPP

(Platinum Propietary Product)

A proprietary reverse mortgage is a private loan that allows you to convert a portion of your home's equity into cash. As private loans, proprietary reverse mortgages are offered and insured by private lenders and are not backed by the government. These loans are also known as jumbo reverse mortgages, since lenders can lend amounts larger than the federal limit. All borrowers on loan must be 55 years or older.

HECM For Purchase

(Home Equity Conversion Mortgage)

HECM for purchase is a home equity conversion mortgage where a borrower comes in with proceeds from the sale of a home as a down payment. They utilize the reverse product to fund the rest of the home to give them no monthly mortgage payment. This is a very popular product for upsizing, downsizing or relocation.

How a home equity conversion mortgage (HECM) compares to a conventional mortgage:

Similarities:

Homeowner maintains title and ownership
Homeowner is responsible for taxes, insurance, and maintenance
Loans are secured by notes and deeds
Closing costs are similar for HECM & tradtional mortgage

Differences:

No monthly mortgage payments are required with a reverse mortgage
A HECM credit line can never be reduced; it's guaranteed to increase over time, regardless of loan balance or home value
Borrower can never be required to repay more than the home is worth (non-recourse loan), and pays a modest FHA insurance premium to gain these benefits
Borrowers must be 62 in order to apply for a reverse mortgage