Who are the biggest reverse mortgage providers?


It can be said that HUD/FHA and Fannie Mae are the biggest reverse mortgage providers in the US although HUD/FHA do not lend funds directly. Rather, they insure the HECM loans issued by private bank/lender. HECM (Home Equity Conversion Mortgage) is the HUD/FHA reverse mortgage for seniors.

There are many private loan providers offering alternative reverse mortgage products plus they often offer Fannie Mae's Home Keeper and a variety of HECMs. While it is true that many private reverse mortgage providers may have somewhat higher fees, some will also offer higher flexibility, may not ask for a mortgage insurance premium for some products and can have flexible payment options.

To choose among your local alternative reverse mortgage loan providers, contact a reverse mortgage counselor to discuss reverse mortgage providers after you have collected quotes from different lenders. Also, additional information on different reverse mortgage providers and their products may be found online.

Reverse mortgage providers will offer you different options.

A HUD/FHA reverse mortgage loan will be tied to the FHA loan limit for your county, property type and household income, therefore it will be limited. Fannie Mae's Home Keeper is also tied - to the Fannie Mae loan limits (currently $417,000), which are higher than the FHA's limits (less than $400,000 for high-cost areas).

Have in mind, the mortgage insurance premium that goes with a HECM ascertains that your reverse mortgage installments will not be suspended in case anything your HUD approved lender experiences difficulties or goes out of business.

A proprietary reverse mortgage will be most adequate if your residence value is significantly above the FHA and Fannie Mae' loan limits.

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