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No, this is probably the biggest myth about reverse mortgages. The borrower’s estate will have the opportunity to pay off the loan balance by either selling the property or refinancing.

Why are the closing costs so much higher than a traditional refi?

This is an FHA loan so there is a mortgage insurance premium included in the cost of this loan. Otherwise, all other expected closing costs are the same.

What are the other differences between a Reverse Mortgage and a Home Equity Loan?

First, home equity loans are based on income and credit scores. Second, home equity loans require monthly payments back to the bank. Neither of these requirements are associated with the reverse mortgage.

How are we compensated?

You will receive a portion of the origination fee after the loan funds. A check will be mailed to your company. Call Becki Seaman to discuss further.

What is the process for a Reverse Mortgage?

Click here for a detailed account of the Reverse Mortgage process.

How long does the process take?

Generally Academy Mortgage closes Reverse Mortgages in approximately 30 days.

Is there a Yield Spread Premium?

Because the interest rate is set and mandated by the Federal Government, there is no Yield Spread on Reverse Mortgages.

How do we sign up with Academy Mortgage?

Signing up as a prefereed broker with Academy Mortgage is easy. Click this link to “Sign Up for the Academy Mortgage Preferred Broker Network” and see how easy it is!

What is the interest rate on a Reverse Mortgage?

The interest rates on the HECM program are set by the FHA and are based on the 1 year Treasury Bill. The Fannie Mae Homekeeper is based on the 1 Month CD and the Privately funded products available are determined by the Lender.

How much will my client qualify for if they choose a Reverse Mortgage?

The amount of money your borrower has available is determined by their age, the value of their home, FHA lending limits and the current “expected” interest rate. As a member of the Academy Mortgage Preferred Broker Network, you can use our web calculator for a quick analysis. Calculator

What if my clients’ house is worth much more than the FHA lending limit?

We are pleased to inform you that jumbo products are now available. Call Becki Seaman for more information or feel free to use our Web Calculator for a quick analysis of how the jumbo product will benefit your borrower.

How can my client get the funds from their Reverse Mortgage?

Your clients have several options to choose from in order to customize dispersment to meet their financial needs:

Line of Credit: Money is left in an account until a need arises. This money will gro resutling in access to more funds in the future.
Lump Sum: Client takes all monies available in one lump sum payment.
Tenure Payment: Client receives a set amount monthly for life via check or direct deposit.
Term Payment: Client receives a set amount monthly for a set period of time.
Any combination of the above is allowed and can be changed by the borrower as often as they like after the loan funds.

What is the free housing counseling session they have to attend?: The Government requires that all Reverse Mortgage borrowers attend a free housing counseling session. Please contact Becki Seaman for a current list of approved housing counselors.
What if there are repairs that need to be done on the home?: If this is the case, the repairs can be done after the loan closes. The money is escrowed at 1.5% times the estimate. The repairs cannot exceed 15% of the value of the home.
When I have a client who is ready to apply, should I send you an application?: No, once you have signed up with Academy Mortgage you can send us your client’s information easily by using the link in the secured area of this site titled “Submit Your Loan”. Then just sit back and relax knowing your client is in the hands of courteous professionals with years of experience.
Does my company need an FHA License?: No, you are brokering the loan through Academy Mortgage and, therefore, you do not need to be licensed by the FHA.
How can I market the Reverse Mortgage?: Academy has several ideas and tools available to our Preferred Brokers in the Training/Education section of the secured access area.
Can my client Refinance their Reverse Mortgage?: Yes, many Reverse Mortgage clients will refinance their Reverse Mortgages to pull out additional equity due to appreciating home values and as age increases.
What if a client’s spouse is under 62 years of age?: The spouse would need to come off of title either completely or as a remainder. This is not recommended unless it is due to a hardship case..
Are Power's of Attorney allowed ?: Yes, but we must review and approve the POA prior to application. If you have a Power of Attorney, please submit a copy to your Academy Mortgage representative immediately.
Are Trusts allowed?: Yes, but we must review and approve the POA prior to application. If you have a Power of Attorney, please submit a copy to your Academy Mortgage representative immediately.
What if there is a second mortgage on the property?: Any liens on the property must be paid from the proceeds of the Reverse Mortgage, including second mortgages, home equity loans and any judgments attached to the property.
What are the tax implications of a Reverse Mortgage?: The Reverse Mortgage proceeds are considered a loan, and therefore, are tax-free.
How is the loan repaid?: The loan is repaid when all borrowers no longer occupy the property. The Reverse Mortgage can be paid back through a refinance of the property or paid from the proceeds of the sale of the property.
What are the borrower’s responsibilities?: Your borrowers must live in the home as their primary residence, pay their property taxes and pay their homeowner’s insurance.
What if my client is in foreclosure or bankruptcy?: The Reverse Mortgage can be a great way to resolve these issues since there are no income or credit requirements.
Is it a requirement to pay off credit cards and other unsecured debt?: No, the borrower is only required to pay off any existing liens on the property.
What happens when my client dies?: When all borrowers have died, the loan becomes due and payable. Their estate has the opportunity to sell the property or refinance with traditional financing in order to repay the loan balance.
What if I do a Reverse Mortgage for a husband and wife and one of them dies?: As long as one borrower is still living in the home, the loan remains in place. The loan only becomes due when all borrowers have left the property.
Does a Reverse Mortgage affect Social Security or Medicare?: No, the Reverse Mortgage does not affect Social Security or Medicare.
What if the borrower wants to sell their home in later years?: The borrower retains all rights to the property since their name remains on the title. If they decide to sell the property, they simply must use the proceeds of the sale to pay off the loan balance and the leftover equity is theirs.
Is there a pre-pay penalty?: No, there is no pre-pay penalty on a Reverse Mortgage.
Can my client add a person to title or change the names on title after closing the Reverse Mortgage?: Any changes to the title of the property will make the loan due and payable.