Borrower Requirements and Responsibilities

Age: All borrowers must be at least 62 years of age. It may be possible to obtain a reverse mortgage when a non-borrowing spouse is under 62, but the borrowing spouse must be of eligible age. Though a homeowner must be 62 to obtain the reverse mortgage, an application may be initiated at 61½. There may be options in certain states for homeowners 60-62 as well. Please ask your Loan Officer for more information.

Occupancy: The property  must be the primary residence of the borrower. Vacation homes are not eligible and an investment property may only be eligible if one of the units (4-unit maximum) is occupied by the borrower.

Property Charges: A reverse mortgage borrower is required to pay and remain current on property taxes, homeowners insurance and other mandatory obligations including HOA fees.

Property Condition: Borrowers are responsible for completing mandatory repairs and maintaining the condition of the property.

Financial Requirements: Many folks think a reverse mortgage should only be used when all other accounts and options are exhausted. This could not be further from the truth. While it is a great loan product which may help a senior who may be facing foreclosure or other hard times, talk to your financial planner about how using a reverse mortgage loan at an earlier age may work with your overall retirement needs, along with helping you “age in place.” A reverse mortgage facilitates home ownership by allowing borrowers to borrow against the accumulated equity in their home while deferring any required payments until they sell the home or vacate the property. Some income and credit qualifications apply to ensure you have the ability to pay taxes and insurance, and to maintain the home; some property qualifications also apply.

Features of Reverse Mortgages

Home Ownership: You remain the owner of your property. There is no change to the deed or title of your home when completing a reverse mortgage. The actual reverse mortgage available funds are based on current interest rates, current charges associated with loan, borrower date of birth (or non-borrowing spouse, if applicable), the property sales price and standard closing cost.

Just like a traditional loan, the borrower must comply with all of the loan terms and continue to pay property taxes, homeowners insurance, and maintain the home to avoid foreclosure.

Types of Reverse Mortgages

Home Equity Conversion Mortgage

Most, but not all, reverse mortgages today are federally insured through the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) Program.

A HECM is not a government loan. It is a loan issued by a mortgage lender, but insured by the Federal Housing Administration, which is part of HUD.

FHA collects a Mortgage Insurance Premium (MIP) at closing equal to 2% of the home’s appraised value or the FHA lending limit of $726,525, whichever number is less. This up front premium is typically financed through the loan rather than paid out-of-pocket. FHA also collects an annual insurance premium of 0.5% percent (half a percent) of the outstanding loan balance. This insurance protects the borrower if  the servicer is not able to make a payment from any remaining loan proceeds. The insurance also protects the lender if the value of the home upon selling is not enough to cover the loan balance. In the latter case, the government insurance fund pays off the remaining balance.

Proprietary Reverse Mortgage

Proprietary reverse mortgages are privately insured by the financial institutions that offer them. They are not subject to all of the same requirements as HECMs, but typically offer the same protections found in the HECM program. Proprietary reverse mortgages have gained in popularity in recent years due in large part to the additional features they may offer such as the ability to access more cash proceeds for homeowners with home values above the $726,525 FHA maximum loan limit. The products also offer expanded opportunities for condo owners in non-FHA approved communities and even for younger homeowners aged 60 and 61 in select states.

Rick R. Rodriguez

Rick R. Rodriguez

Rick R. Rodriguez has been in mortgage sales and management since 2003 and has held positions as loan originator, sales manager, production manager, and branch manager. He is well-versed in all types of mortgage products, and over his career, he has been recognized as an accomplished and trusted professional.

In 2004, after completing his first reverse mortgage transaction, Rick took the steps to focus primarily on this kind of loans and become a specialist in the industry. In February 2016, he became the first person in Southern Nevada and the 117th in the nation to obtain the designation of Certified Reverse Mortgage Professional (CRMP®).

As a CRMP®, Rick has extensive experience in all available reverse mortgage products, including the Home Equity Conversion Mortgage (HECM) refinance, HECM to HECM refinance, HECM for purchase and jumbo reverse mortgage. His clients benefit from his financial qualifications, meticulousness, effective communication skills, and years of experience working with reverse mortgages. He has the proven ability to explain the reverse mortgage to help others understand the process.

Pushed by his passion for reverse mortgages and his commitment to the industry, Rick spends his time working with homeowners, realtors, healthcare professionals, and various other individuals and organizations to lay out the role reverse mortgages have in real estate and retirement planning.

“A reverse mortgage should be, at the very least, considered by every homeowner over the age of 62. The flexibility that this program offers can be life-changing as well as an effective counterpart to retirement planning. I always welcome the opportunity to speak with clients about a reverse mortgage, and to help them determine if it may be the right option to meet their financial and housing needs.”

Rick is a Las Vegas native, and he holds a BSBA in Accounting from the University of Nevada Las Vegas. After graduating college, he worked for a local Certified Public Accounting firm before moving into the mortgage industry. He enjoys spending time with his loved ones, traveling, exploring the outdoors, playing various sports, and above all helping his wife raise their family.

Jesse Brewer

Jesse A. Brewer

Jesse A. Brewer (NMLS# 473359) is a veteran professional in the industry with extensive background in reverse mortgage origination, sales management, and production center management. He currently specializes in reverse mortgage origination at Resolute Bank working directly with homeowners, real estate professionals, financial specialists and healthcare providers to inform them of this type of loan’s flexibility and practical applications—helping homeowners improve their retirement economic outlook.

Jesse began his career in 2001 with a mid-sized Boston-area bank, before moving to Las Vegas in 2006 to focus on mortgage origination. In 2008, he joined a local reverse mortgage lender, where he became, in two years, the top-producing reverse mortgage loan officer.

Jesse then moved into sales management, a role which he held for several years, before becoming vice president, national sales manager, and reverse mortgage division head running Proficio Mortgage Ventures, LLC, based in Henderson, NV. As division head, Jesse used his innate leadership and team-building expertise to propel a small sales team into a national production center in the bank’s reverse mortgage division.

Jesse is dedicated to making the industry approachable by being an active speaker, educator, and relationship builder within the banking and mortgage community. Clients compliment his ability to simplify the reverse mortgage process with solutions that lead to life-changing outcomes.

“The reverse mortgage is a powerful financial tool that should be evaluated by anyone considering retirement options. I always look forward to helping clients understand the flexibility of the program and how it can be utilized to provide for a more comfortable standard of living through retirement.”

Jesse holds a degree in Business Administration Management from Massachusetts Fitchburg State University. He enjoys sports and outdoor activities with his wife, Virginia. He played football at FSC followed by playing rugby for over a decade, that included winning a National Championship in 2010.

 

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