Types of Reverse Mortgages - Reverse Mortgage Corvallis

Are there different types of reverse mortgages available in Oregon?

Yes. The majority of reverse mortgages these days are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. If you apply for a HECM mortgage in Corvallis, you’ll be able to choose between the following choices:

Payment of home loan funds. You could get money as a line of credit, monthly installment, a combination of these, or a single payment.
Interest rate. You may choose between a fixed rate and an adjustable rate. Fixed interest rates are only available with the one time payment option.

The reverse mortgage program also offers two special purpose home loan options for special scenarios:

HECM for Purchase (H4P). HECM for Purchase enables you to buy a house in Corvallis OR utilising funds from the reverse mortgage loan.
HECM Refinance loan. HECM Loan refinancing allows for one HECM mortgage to be converted into another HECM loan. The common reason behind refinancing a reverse mortgage in city is to get a reduced interest rate, if one is attainable, or to borrow more funds, if the house appraisal value has gone up.

Tip:

Choosing a line of credit or monthly payment will maximize the total that you may borrow overall.

Non-HECM Reverse Mortgages

Single-purpose reverse mortgages may also be provided by some state and local governments and non-profit groups. These are typically used only for the purpose specified by the lender (such as home repairs or property taxes). They will often only be available in some areas for property owners with very low to modest income. These non-HECM reverse mortgages, if available in Corvallis OR, will not be federally insured.

A number of loan providers also offer proprietary reverse mortgages for seniors, that are not federally insured. These are typically intended for homeowners with higher home values.

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