Loan Options
Loan Options
The HECM Program
Don’t fall behind on your finances.
Lighten the load with a HECM.
The Home Equity Conversion Mortgage (HECM) is a federally-insured program created by the Federal Housing Administration. It is the most common type of reverse mortgage with several safeguards in place to ensure you are protected.
Key Product Features
- Receive tax-free monthly payments
- Draw funds on demand
- Remain in your home for life
- No required mortgage payments
- Only pay property taxes, insurance and maintenance
HomeForLife
A South River Mortgage Proprietary Product.
HomeForLife is a new product designed to get you 100% of your funds at closing. This special type of reverse mortgage gets you the cash you need while you remain in your home for life.
Key Product Features
- Payoff necessary debts at closing to qualify
- Flexible financial requirements
- Minimum age requirement only 55*
- No Initial Mortgage Insurance Premiums
Refinance Your Reverse Mortgage
Get More Out of Your Reverse Mortgage With South River Mortgage
We are not just a lender, we are a broker, too. We shop around to find the right solution your situation. Our licensed specialists work with you every step of the way so you can get the most out of your home equity with the best interest rate for your reverse mortgage.
What is a reverse mortgage?
A reverse mortgage is a type of loan that allows homeowners to access their home equity and turn it into cash. A reverse mortgage offers the unique opportunity for a homeowner to use their home equity without incurring a monthly mortgage payment or selling their home.
Why HomeForLife?
HomeForLife is a product offered only at South River Mortgage. Because we are a private lender, we have different guidelines than the FHA sets for the HECM loan. With HomeForLife, homeowners 55 and older* can consolidate debt and receive 100% of their loan proceeds at closing. Compared to a HECM, HomeForLife has more flexible financial requirements. Even homeowners that have been previously declined for a reverse mortgage loan or similar programs still have a good chance of qualifying for HomeForLife.
*This minimum age requirement only applies where allowed by state law.
A Smart Choice.
The below table illustrates what your cash flow could look like with a HECM. When comparing the amount leftover during retirement with a traditional mortgage (in red) and the amount left over with a reverse mortgage (in green), you can see how a HECM can help you manage your monthly expenses and avoid unnecessary financial stress.
| Before Retirement | During Retirement | Retirement with a Reverse Mortgage | |
|---|---|---|---|
| Income | $4,000 | $2,500 | $2,500 |
| Monthly Mortgage Payment | $2,000 | $2,000 | * |
| Groceries | $500 | $500 | $500 |
| Utilities | $250 | $250 | $250 |
| Gas | $100 | $100 | $100 |
| Auto Loan | $300 | $300 | $300 |
| Disposable Income | $850 | -$650 | $1,350 |
*As with any mortgage, you must continue to make payments for property taxes, insurance, and maintenance, as well as comply with the loan terms.
What is a reverse mortgage?
A reverse mortgage is a type of loan that allows homeowners to access their home equity and turn it into cash. A reverse mortgage offers the unique opportunity for a homeowner to use their home equity without incurring a monthly mortgage payment or selling their home.
Why HECM?
Life is easier with a HECM
Income can be reduced or limited in retirement, which may make mortgage payments a greater burden than many homeowners realize. While you are still required to maintain your home, a HECM does not require you to make monthly mortgage payments. You have the freedom to skip a mortgage payment or eliminate mortgage payments entirely, providing additional control over your cash flow.
Why Refinance?
Refinancing your reverse mortgage is a smart choice if you need additional cash or want to take advantage of lower interest rates. South River Mortgage provides you with two great options: the Home Equity Conversion Mortgage (HECM) and HomeForLife.
These programs can enable you to:
- Lower your interest rate
- Get cash-out
- Consolidate debt
Refinancing Options
What is a HECM?
HECM was created by the Federal Housing Administration (FHA). It is a federally-insured reverse mortgage program designed to help homeowners 62 and older access equity in their home to supplement their retirement. It allows you to remain in your home, eliminate required monthly mortgage payments and access your home equity. The HECM offers access to your cash through a lump sum, monthly installments, or a line of credit, though not all of your loan proceeds will be available at closing. To receive 100% of your proceeds at closing, inquire about HomeForLife by South River Mortgage.
What is HomeForLife?
HomeForLife is a product offered only at South River Mortgage. Because we are a private lender, we have different guidelines than the FHA sets for the HECM loan. With HomeForLife, homeowners 55 and older* can consolidate debt and receive 100% of their loan proceeds at closing. Compared to a HECM, HomeForLife has more flexible financial requirements. Even homeowners that have been previously declined for a reverse mortgage loan or similar programs still have a good chance of qualifying for HomeForLife.
*This minimum age requirement only applies where allowed by state law.
A Smart Choice.
The below table illustrates what your cash flow could look like with a HECM. When comparing the amount leftover during retirement with a traditional mortgage (in red) and the amount left over with a reverse mortgage (in green), you can see how a HECM can help you manage your monthly expenses and avoid unnecessary financial stress.
| Before Retirement | During Retirement | Retirement with a Reverse Mortgage | |
|---|---|---|---|
| Income | $4,000 | $2,500 | $2,500 |
| Monthly Mortgage Payment | $2,000 | $2,000 | * |
| Groceries | $500 | $500 | $500 |
| Utilities | $250 | $250 | $250 |
| Gas | $100 | $100 | $100 |
| Auto Loan | $300 | $300 | $300 |
| Disposable Income | $850 | -$650 | $1,350 |
*As with any mortgage, you must continue to make payments for property taxes, insurance, and maintenance, as well as comply with the loan terms.
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