a line of credit score
mounted month-to-month funds
mixture of each choices
Whereas they’re extensively obtainable, HECMs are supplied solely by means of FHA-approved mortgage lenders.
2. Proprietary reverse mortgage
One of these reverse mortgage is just not federally insured. In case your shoppers’ property has excessive worth, they will get a much bigger mortgage advance from a proprietary reverse mortgage.
3. Single-purpose reverse mortgage
One of these reverse mortgage is much less widespread than the earlier two talked about. It’s supplied by native and state authorities companies and non-profit organizations. Nonetheless, it’s also the least costly.
The catch is that your shoppers can solely use a single-purpose reverse mortgage to cowl one particular expense. For example, it could solely be used for house renovation or repairs, property taxes, and different functions specified by the mortgage lender.
Whether or not your shoppers select an HECM, a proprietary reverse mortgage, or a single-purpose reverse mortgage will rely on their monetary state of affairs.
