Common Questions

Common Questions

What is a reverse mortgage?

Reverse Mortgage by definition:  FHA’s Reverse Mortgage is a special type of home loan that allows a homeowner to convert a portion of equity into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence*. HUD’s reverse mortgage provides these benefits, and it is federally-insured (FHA) as well. Our team has extensive local experience processing and originating Reverse Mortgages. Please contact Covenant Reverse Mortgage for any information you need on pros and cons, purchase a home with Reverse Mortgage, age requirements, or anything else on the federally insured Reverse Mortgage program.

*moving away, selling the home, long term care are all types of non-use.  Let’s discuss your specific matter and get an answer.


How can I use the money I receive from a reverse mortgage?
There is no restriction on how the proceeds from a reverse mortgage can be used.  The money you receive at closing is YOUR MONEY.  You can use it to pay other debts, repair your home, meet family needs, take a vacation, buy a new car . . . or two!!  You decide.

How can I qualify for a reverse mortgage?
To qualify for a reverse mortgage a borrower must be at least 62 years old (and in some cases based on the product chosen as young as 55!), subject property must be your principle residence and have adequate equity.  A lender will also complete a financial assessment of the borrower.  You must be able to pay your property taxes and insurance and show that you can do so with your current income.

Will my home qualify for a reverse mortgage?
Single-family homes, 2-4 unit properties (one unit occupied by owner), FHA-approved manufactured homes, HUD approved condominiums, and townhomes are eligible for a reverse mortgage.  If your home needs repairs you can set up a repair set-aside if desired to complete the project.  FHA requires that the home be structurally sound.  The appraiser will review the home and note any repairs in his/her report.  Once noted we can work on getting the repairs done or on setting aside funds for that purpose.

How much money can I get from a reverse mortgage?
The amount will vary borrower to borrower and is based on a few factors including age of the youngest borrower, current interest rates, value of your home, and how much you may owe on an existing mortgage.  The higher the appraised value of the home the more funds you will have to work with in the Reverse Mortgage.

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CO License #20191064045
ID License MBL #2081824975
MT License #1824975
OR License ML #5787
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Contact Us

Covenant Reverse Mortgage, LLC
211 E Logan Street
Caldwell, ID 83605
This material is not from HUD or FHA and has not been approved by HUD or a government agency.
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When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.