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The money you need for the life you want

A reverse mortgage is a unique loan that allows you to borrow against the equity in your home. You still own your home, but instead of making monthly payments, you receive them.

Turn your life around

A reverse mortgage can help if you need to:
• Eliminate an existing mortgage or pay off debts
• Supplement your income or fund a financial planning solution
• Cover medical expenses
• Upgrade your home or right-size to a new home

Your hometown expert

Call a dedicated Cambria® Mortgage Reverse Mortgage specialist today. With over 14 years of experience, we can answer any questions you might have and help you find the best solution for your financial needs.

Get more information

Scroll down to learn more about all the Reverse Mortgage benefits and get answers to frequently asked questions.

FAQs

What is a Reverse Mortgage?

A reverse mortgage, or Home Equity Conversion Mortgage (HECM), is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you've built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, you don’t have to repay a home equity loan until you no longer use your home as your principal
residence – and meet the obligations of the mortgage. You can also use a reverse mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at 800-510-0301.

Do I qualify?

To be eligible, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan. You must also live in your home and have the financial resources to pay ongoing property charges, including taxes and insurance. In addition, you are required to receive consumer information free or at very low cost from an HECM counselor prior to obtaining the loan. You can find an HECM counselor online or by calling 800-569-4287.

You may apply for an HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.

Your home must be a single-family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

How much money can I get from my home?

The amount varies by borrower and depends on the age of the youngest borrower or eligible non-borrowing spouse, the current interest rate, and value. (Value is based on the lesser of appraised value or HECM FHA mortgage limit of $625,500 or the sales price.)

If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.

How can I get my money?

For adjustable interest rate mortgages, you can select one of the following payment plans:

Tenure – equal monthly payments (as long as at least one borrower lives and continues to occupy the property as a principal residence).

Term – equal monthly payments for a fixed period of months selected.

Line of Credit – unscheduled payments or installments, at times and in an amount of your choosing until the line of credit is exhausted.

Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.

Modified Term – combination of line of credit, plus monthly payments for a fixed period of months selected by the borrower. (For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.)

Single Disbursement Lump Sum – a single lump sum disbursement at mortgage closing.

When the home is sold or no longer used as a primary residence, the cash, interest, and other HECM finance charges must be repaid. All proceeds beyond the amount owed belong to your spouse or estate. This means any remaining equity can be transferred to heirs. No debt is passed along to the estate or heirs.

What if I change my mind after closing?

By law, you have three calendar days to change your mind and cancel the loan. This is called a three day right of rescission. The process of canceling the loan should be explained at loan closing. Be sure to ask the lender for instructions on this process. Mortgage lenders differ in the process of canceling a loan. You should ask for the names of the appropriate people, phone numbers, fax numbers, addresses, or written instructions on whatever process the company has in place. In most cases, the right of rescission will not be applicable to HECM for purchase transactions.

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