FAQ

A reverse mortgage is a special kind of loan for seniors allowing homeowners ages 62 and up to borrow money against the equity built up in their home. It is a safe and easy way to turn home equity into cash. You are not required to make any monthly principal and interest payments. You are responsible for payment of property taxes, homeowners insurance, HOA dues and regular property maintenance. This loan is not due as long as you live in your home and maintain the items previously mentioned.

A Home Equity Conversion Mortgage (HECM) is an FHA-insured reverse mortgage. FSI Mortgage, LC. offers this program in Utah and Idaho.

They are now! Years ago, reverse mortgages from private lenders were often not good because of high fees, costs and interest; however, now that the FHA insures these loans, reverse mortgages are closely regulated and scrutinized. You may rest assured that if you have an FHA-insured mortgage, your costs and fees are within the limits and guidelines set by HUD.

Requirements for eligibility are: 1. You must be age 62 or older. 2. You must own your home, and have it at least half paid off. 3. You must live in the home as your primary residence.

Although a specific credit score is not a qualifying factor for a reverse mortgage, an analysis is performed to determine your capacity and ability to meet your monthly financial obligations using your current documented income. This is commonly referred to as a residual income analysis.

You can choose whether you will receive a lump sum, a line of credit that you can draw on when needed, an automatic monthly income, or a combination of these.

A reverse mortgage will pay off your existing mortgage and give you any additional money available. This can be a great benefit because it eliminates your current mortgage payment.

Yes, you will own it and you will still remain on the title as the owner.

Your heirs will still inherit your house according to the terms of your will or trust. However, the house will be subject to a mortgage for the amount of money that was advanced to you plus any costs or interest accrued.

Interest rates can be fixed or variable depending on the option chosen. The HECM loan carries the traditional fees and costs associated with any FHA-insured mortgage. The fees and costs are usually financed as part of this loan, which will impact the amount of cash available to payoff existing mortgages and/or liens on the home.

Since this mortgage is an FHA-insured loan, neither you nor your heirs will owe more than the value of the home.

Yes. A reverse mortgage for purchase works like any other reverse mortgage. The amount you may borrow is based on the lower of the sales price or the appraised value of the home, your age, and the interest rates at the time. The option of using a reverse mortgage could provide an answer if you wish to move to a new location or find a home that better meets your current needs. Your reverse mortgage specialist can explain the details further.

You will need to bring in funds, either from the sale of  a previous residence, gifted monies, or investment or other financial accounts to close the new loan. The amount you will need to bring to closing will be based on the criteria as mentioned above. Ask your specialist for a personalized quote today!

Remember, no monthly mortgage payment for as long as you remain in the home and maintain your property taxes, homeowners insurance and regular property maintenance. If you don’t maintain these items, your reverse mortgage could become due.

The amount is determined by a formula that includes your age, your spouse’s age, your home’s value, your current mortgage balance (if any), current interest rates, and FHA’s maximum claim amount. There may be other factors that will change the amount you receive. Please ask your Loan Specialist for details.

Contact FSI Mortgage at (801) 281-2303 for a personal meeting and to receive an estimate of what would be available to you, along with a review of your options.

Not as long as you live in your home and maintain your property taxes, homeowners insurance, HOA dues (if applicable), upkeep of the home, and any other items listed in your loan agreement. But if you move out or sell the home, or fail to pay the items listed above, you must repay the loan just like any other mortgage. After you and your spouse die, your heirs can either sell the home or they can refinance it to pay off the reverse mortgage.

No. It is actually a loan, so there is no income tax.

Yes, it is very safe. You are guaranteed to get your money and that you can stay in your home as long as you like while maintaining your property taxes, homeowners insurance and regular property maintenance. This programs also ensures that you will never owe more than your home is worth.

One of the best ways is to call for a free booklet about reverse mortgages, or you can attend a seminar in your area. The seminars are sponsored by FSI Mortgage and taught by leading area experts on reverse mortgages. Call 801-281-2303 for a seminar schedule.

FSI Mortgage offers HECM Loans in Utah and Idaho. You can meet and talk to one of their specialists at their office or in your home, and when you are ready to apply, they will even assist you in completing your application. Call 801-281-2303 to schedule an appointment today!

We have programs offering as little as a 3% down. We also provide VA loans, which finance 100% of the purchase price for eligible Veterans. The more down payment you can provide, the lower your interest rate and monthly payment will be. However, we have loan programs with as little as 3% down, 3.5% for FHA loans, and 0% for VA loans!

Depending on your specific circumstances, we can go as low as a 560 credit score, but the higher your score, the better your interest rate! We can also assist in clearing up credit issues and help you get qualified. We also have other subprime loan products available. Talk with your Loan Specialist to find the one that fits you!

Yes.

Interest rates are determined by several criteria; among which are your credit score, your debt to income ratios (how much you owe vs how much you make), how much you are trying to borrow, and are you taking cash out to consolidate debt. When any of these, along with other factors, are taken into consideration, your interest rate will change. The really attractive rates are available for those individuals who do not go into any of the categories that would cause what is known as a “hit” to your rate. Ask your FSI Mortgage Specialist to check these things out for you first so that you get a clear picture of your actual rate, and not a “teaser” quote!

With the newly implemented mortgage regulations, you should ask for an official Loan Estimate* before choosing a loan. Your actual rate, payment and costs could be higher than the advertisement states. You are encouraged to obtain a Loan Estimate to provide a clear choice of loan options.

*The Loan Estimate is similar to what a Good Faith Estimate (which is no longer used) provided as fees and costs for your loan.