At Waterstone Mortgage, we offer financial independence to seniors through our financial solutions like home equity conversion mortgages and our proprietary reverse mortgage loan. We believe retirement should be a time for fulfillment and not financial stress. Keeping this in mind, we provide reverse mortgage products designed to liberate you from financial constraints after your retirement. Based out of the Charlottesville area, we serve clients across the state of Virginia, including in Albemarle, Green, Madison, Nelson, Augusta, Waynesboro, Louisa, and Fluvanna.
As a leading local reverse mortgage company, we aim to educate and inform seniors throughout the local area to help them determine if a home equity conversion mortgage is right for them. Read on to learn some key points about the reverse mortgage loans we offer. For more information on our services or to learn more reverse mortgage information, you can reach us at 434-529-8421.
Offering Two Types of Reverse Mortgage Options
At Waterstone Mortgage, we offer two reverse mortgage options: Home Equity Conversion Mortgage and our Proprietary Reverse Loan.
Home Equity Conversion Mortgage (HECM)
A home equity conversion mortgage is a type of reverse mortgage that is designed for homeowners over 62 years. With this tool, a homeowner can convert a portion of his/her home equity into cash without the need to sell the home or make monthly mortgage payments. Here are some key features of HECM:
- The homeowner is not required to pay monthly mortgage payments. Instead, the loan can be repaid when the homeowner moves out or sells the home.
- HECMs are covered under FHA insurance. FHA insurance means both the lender and borrower are protected from fraud.
- A homeowner can receive payments through various ways, in the form of a lump sum, regular monthly payments, or line of credit.
Proprietary Reverse Loan
A proprietary reverse loan is a type of reverse mortgage that is offered by private financial institutions and not the government. Here are some key features of Waterstone Mortgage’s Proprietary Reverse Loan:
- Our proprietary reverse loans offer the maximum loan limit. If you have a high-valued home, our proprietary reverse loans can fetch you maximum cash, higher than what is available through a traditional home equity conversion mortgage.
- Unlike HECM, which is backed by FHA insurance, a proprietary reverse loan isn’t insured by FHA insurance. This means both the lender and borrower are not protected and have to take the risks.
- Just like HECMs, a proprietary reverse loan can be availed through various ways, in the form of a lump sum, regular monthly payments, or line of credit.
What Makes a Reverse Mortgage Different from a Traditional Loan?
A reverse mortgage loan differs from a traditional loan or home equity line of credit (HELOC) in several ways:
- In reverse mortgages, you do not need to make monthly mortgage payments, while when you take a traditional loan, you have to make monthly mortgage payments.
- With reverse mortgages, you have the advantage of a non-recourse loan. Reverse mortgages are always structured as non-recourse loans, providing protection to borrowers. With non-recourse loans, borrowers are not liable for repayment beyond the value of the home. On the other hand, traditional loans don’t give you this benefit.
- The unused portion of the line of credit in reverse mortgages can grow over time. This means even if your home’s value remains stagnant or decreases, the credit continues to increase, providing you more funds for the future. On the other hand, traditional loans do not offer this type of benefit.
- Reverse mortgages are regulated by the Department of Housing and Urban Development, while conventional mortgages are not insured or guaranteed by the government.
Contact Us Today for a Home Equity Conversion Mortgage Loan
If you are looking for reliable and experienced reverse mortgage loan providers who can help you find the best reverse mortgage tool for your needs, look no further than Waterstone Mortgage. Experts in home equity conversion mortgages and our proprietary loan option, we will provide all the information you need to help you make an informed decision. To ask questions about reverse mortgages or to learn more about our products, you can reach us at 434-529-8421.
