Compare Reverse Mortgage Programs From Multiple Lenders
Your home may be one of your largest financial assets. A reverse mortgage can allow eligible homeowners to access a portion of their home equity without requiring traditional monthly principal and interest mortgage payments.*
At Five Star Mortgage, we're an independent, owner-operated mortgage broker. That means we're not limited to one reverse mortgage lender or one program. We can compare available options from multiple lenders to help determine which program and terms may best fit your goals.
Serving Pennsylvania, New Jersey & Florida
In-person consultations available in Pennsylvania and New Jersey.
Compare Your Reverse Mortgage Options
Talk directly with an experienced Five Star Mortgage professional and find out what options may be available based on your age, home value, current mortgage balance and financial goals.
Prefer to talk? Call Five Star Mortgage at 267-983-6033.
Do You Have to Be 62 to Get a Reverse Mortgage?
Not necessarily.
The FHA-insured Home Equity Conversion Mortgage (HECM) is generally available to eligible homeowners beginning at age 62.
However, HECMs aren't the only type of reverse mortgage.
Certain proprietary reverse mortgage programs may be available to eligible homeowners beginning at age 55, depending on the program, property, state and individual circumstances.
If you're between 55 and 61, contact Five Star Mortgage and we'll determine whether a proprietary reverse mortgage program may be available to you.
Why Work With Five Star Mortgage?
Multiple Reverse Mortgage Lenders
Five Star Mortgage is a mortgage broker, not a single reverse mortgage lender.
We can compare available reverse mortgage programs and pricing from multiple lenders instead of limiting you to the products offered by just one company.
Competitive Options
We're a small, owner-operated mortgage brokerage without the structure of a large national call center.
We'll compare available programs, pricing and options for your individual situation so you can make an informed decision.
Experienced, Straightforward Advice
Reverse mortgages aren't right for everyone.
We'll explain the potential advantages, costs, responsibilities and drawbacks in plain English. If we don't believe a reverse mortgage makes sense for your situation, we'll tell you.
Personal Service
You'll work directly with an experienced Five Star Mortgage professional rather than being passed from one call-center representative to another.
Phone and video consultations are available in Pennsylvania, New Jersey and Florida, with in-person appointments available in Pennsylvania and New Jersey.
What Could a Reverse Mortgage Help You Accomplish?
Depending on your circumstances and the program you qualify for, a reverse mortgage may allow you to:
Pay off an existing mortgage
Access a portion of your home's equity
Establish a line of credit
Receive monthly proceeds
Access funds for planned expenses
Increase retirement cash-flow flexibility
Purchase another primary residence using a HECM for Purchase
How proceeds may be received and which options are available depend on the reverse mortgage program and your individual circumstances.
Not sure whether a reverse mortgage is right for you? That's okay.
Our job is to explain your options and the numbers so you can decide whether it makes sense for you.
HECM vs. Proprietary Reverse Mortgage
There are different types of reverse mortgages, and understanding the difference is important.
FHA-Insured HECM
A Home Equity Conversion Mortgage (HECM) is a reverse mortgage insured by the Federal Housing Administration (FHA).
HECMs generally require the youngest borrower to be at least 62 years old, subject to applicable program requirements.
HECM borrowers are also required to complete counseling with an approved housing counseling agency before the loan can proceed.
Proprietary Reverse Mortgage
A proprietary reverse mortgage is offered by a private lender and is not an FHA-insured HECM.
Depending on the lender and program, proprietary products may:
Be available beginning at a younger age, including 55+ with certain programs
Accommodate higher-value properties
Offer different loan amounts and proceeds
Have different qualification and property requirements
Availability varies by lender, state, borrower and property.
Five Star Mortgage can help you compare available programs and determine which type may be appropriate for your situation.
Do You Still Own Your Home?
Yes.
With a reverse mortgage, you retain title to your home, subject to the mortgage lien, just as you would with a traditional mortgage.
A reverse mortgage does not mean that the lender takes ownership of your house.
You remain responsible for meeting the requirements of your loan, which generally include maintaining the property and keeping required property charges current.
What Are You Still Responsible for Paying?
A reverse mortgage eliminates the requirement to make traditional monthly principal and interest mortgage payments while the applicable loan requirements are met.*
However, it does not eliminate the normal responsibilities of homeownership.
Depending on the program and circumstances, borrowers generally remain responsible for items such as:
Property taxes
Homeowners insurance
Applicable HOA or condominium fees
Maintaining the home
Other applicable property charges
Failure to meet applicable loan obligations can cause a reverse mortgage to become due and payable.
That's why we'll discuss these responsibilities with you before determining whether a reverse mortgage is an appropriate option.
What Happens to the Home Later?
This is one of the most common questions we receive.
A reverse mortgage doesn't automatically prevent your family from keeping the home.
When the last applicable borrower permanently leaves the home, sells the property or passes away, the reverse mortgage generally becomes due and payable.
Depending on the circumstances and loan program, heirs may have options that can include:
Paying off the reverse mortgage and keeping the home
Refinancing the balance into another mortgage
Selling the property and using the proceeds to repay the reverse mortgage
For FHA-insured HECMs, specific protections and repayment rules apply.
We'll explain how this works before you proceed so you and your family can understand the potential implications.
Frequently Asked Reverse Mortgage Questions
Do I have to be 62?
Not for every reverse mortgage.
FHA-insured HECMs generally begin at age 62. Certain proprietary reverse mortgage programs may be available to eligible homeowners beginning at age 55, depending on the lender, program, state and property.
Can I get a reverse mortgage if I already have a mortgage?
Potentially, yes.
An existing mortgage or other required liens generally must be satisfied as part of the reverse mortgage transaction. Depending on your available proceeds, this can often be accomplished using funds from the new reverse mortgage.
Do I have to make a monthly mortgage payment?
Reverse mortgages generally do not require traditional monthly principal and interest mortgage payments while applicable loan requirements are met.
Borrowers remain responsible for applicable property taxes, homeowners insurance, property maintenance and other required property charges.
Can I sell my house after getting a reverse mortgage?
Yes.
You retain ownership of your home and may sell it. The reverse mortgage balance and other applicable liens and costs would generally be paid from the sale proceeds.
Can my children keep the house?
Potentially, yes.
When the reverse mortgage becomes due and payable, heirs may have options for satisfying the loan balance and retaining the property. The specific options depend on the loan program and circumstances at that time.
How much money can I receive?
There isn't one answer for everyone.
The amount available can depend on factors including:
Age
Home value
Existing mortgage/liens
Interest rates
Reverse mortgage program
Property type
Applicable program limits and requirements
Five Star Mortgage can review your information and compare available programs.
How can I receive the money?
Available options depend on the reverse mortgage program.
Depending on the loan, proceeds may potentially be available through methods such as a lump sum, line of credit, monthly payments or a combination of available options.
We'll explain which choices are available with the programs for which you qualify.
Can I use a reverse mortgage to buy another home?
Potentially, yes.
A HECM for Purchase can allow eligible borrowers to purchase a new principal residence using a combination of their own funds and reverse mortgage proceeds.
This can be useful for homeowners who want to relocate, downsize or move closer to family without taking on a traditional monthly principal and interest mortgage payment.
Are reverse mortgage proceeds taxable income?
Reverse mortgage proceeds are generally considered loan proceeds rather than income for federal income-tax purposes.
Individual tax and benefit circumstances can vary, so borrowers should consult an appropriate tax or financial professional regarding their individual situation.
What does a reverse mortgage cost?
Reverse mortgages can include closing costs and other fees, which vary by loan type, lender and individual transaction.
HECMs can also include FHA mortgage insurance premiums.
Five Star Mortgage will provide and explain the applicable costs and compare available options before you decide whether to proceed.
Is a reverse mortgage right for everyone?
No.
A reverse mortgage can be a useful financial tool for some homeowners, but it isn't appropriate for every situation.
Your age, equity, existing mortgage, future housing plans, financial goals, costs and responsibilities should all be considered.
We believe understanding when not to use a reverse mortgage is just as important as understanding when one may help.
Already Have a Reverse Mortgage Quote?
Let Us Compare It. Reverse mortgage programs, available proceeds, interest rates and costs can differ.
If you've already spoken with another reverse mortgage company, you don't have to accept the first option you're offered.
Five Star Mortgage can review your scenario and compare available programs from multiple reverse mortgage lenders.
There is no obligation to proceed simply because we review your options.
Talk With Five Star About Your Options
Whether you're actively considering a reverse mortgage or simply researching what's available, we're happy to answer your questions.
Tell us a little about your situation and we'll help determine which reverse mortgage options may be available.
Prefer to talk? Call Five Star Mortgage at 267-983-6033.
Five Star Mortgage, LLC
Independent Mortgage Broker
Serving borrowers in Pennsylvania, New Jersey and Florida
NMLS #2686795
No monthly principal and interest mortgage payment is generally required with a reverse mortgage while applicable loan requirements are met. Borrowers remain responsible for applicable property taxes, homeowners insurance, property maintenance, and other required property charges. Failure to meet loan obligations may cause the loan to become due and payable.
HECMs are insured by the Federal Housing Administration and have specific eligibility, counseling and program requirements. Proprietary reverse mortgage programs are not FHA-insured HECMs and their terms, eligibility requirements and availability vary by lender, state and program.
This information is for educational purposes and is not a commitment to lend. All loans are subject to applicable program guidelines, underwriting, property requirements and approval.
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