Federally Insured and Single Purpose Loans
Reverse mortgages can be beneficial for mature homeowners that wish to turn their home equity into cash without losing ownership of the property or having to vacate. Reverse mortgages provide a solution. Find out what lenders offer reverse mortgages in Iowa.
Federally Insured HECM Loans
Regardless of location the federally insured reverse mortgage through the U.S. Department of Housing and Urban Development (HUD) remains largely the same, with standard requirements. No regional differences in interest rate, those are set by HUD.
FHA Lender Loan Limits in Iowa
One factor that does change from state to state and county to county is the FHA mortgage limits. Across all counties in Iowa, FHA limits are right at the national average. This means most homeowners with homes that are average in value are likely to qualify for the HUD Home Equity Conversion Mortgage (HECM), the hands down most popular reverse mortgage in the country. But for homeowners with higher valued homes in Iowa the FHA limits may be insufficient tools for leveraging all the home equity they’ve accumulated over the years.
The FHA and HUD are not direct lenders—they do however approve lenders to handle the HECM and provide a list of HUD approved lenders searchable by state. This is information for which you should never have to pay.
State of Iowa Single Purpose Reverse Mortgages
Single purpose reverse mortgages are one of the three types of reverse mortgages and as the name implies they are useful for borrowers with a single purpose in mind for their home equity money. It’s commonplace for many state and local governments to offer a type of single-purpose loan or reverse mortgage that aids seniors with payment of property taxes or pay for necessary home repairs or improvements, property tax deferral loan or deferred property loan, respectively.
- The State of Iowa has a property tax deferral program in place for homeowners age 65 and older. To be eligible the borrower must have a minimal income, which is annually determined by the state. Applications and details for this program are provided directly through each County Treasurer’s Office.
- Although there are no statewide provisions made for a senior deferred property loan in Iowa borrowers are urged to check with their local town or city government offices for similar programs. A number of towns, including Sioux City, Iowa City and Dubuque provide eligible borrowers with deferred property loans, or “rehabilitation loans,” regardless of age.
Reverse Mortgage Providers for Iowa Borrowers
Below are a representative few of the lenders in Iowa that offer reverse mortgages.
Financial Freedom
Financial Freedom is perhaps the largest volume lender for reverse mortgages and serves customers nationwide. Homeowners age 62 and older may choose from three reverse mortgages: the HUD HECM; the Fannie Mae Home Keeper reverse mortgage, appropriate for seniors that need a slightly higher limit or to use the product as a means to purchase a new home; and Financial Freedom’s proprietary reverse mortgage, the Cash Account, a jumbo mortgage that is also widely offered by many other lenders.
Riverbend Home Mortgage
This regional mortgage company specializes in a huge array of mortgages, including forward and reverse mortgages. Also, senior borrowers may find information that debunks the details of the mortgage business: a full explanation of closing costs, APR and more.
Wells Fargo Home Mortgage
WF is also a leading nationwide lender and not only provides a wide range of retail financial services and products, but also offers mortgages through a separate corporate division. WF offers senior homeowners the HECM and the Fannie Mae Home Keeper.