FHA and Retail Loan Providers in Your State
Home value is a key factor that helps determine which type of reverse mortgage would best suit your needs. The federally insured HUD Home Equity Conversion Mortgage is designed for most senior borrowers—and it’s a good fit for over 90% of them. However, a deciding factor of “fit” is the FHA mortgage limit, a figure set on a county-by-county basis.
FHA Limits in Kentucky
Almost all counties in Kentucky have their FHA limits set to the national average. A few counties in northern Kentucky have FHA limits a bit above average. Here home values are higher across the board primarily because this region abuts the Cincinnati, Ohio metropolitan area.
Outside of these isolated counties, any homeowners in Kentucky with a high value home may be completely unable to use the government HECM and may have to consider a private product to fill their needs.
The U.S. Department of Housing and Urban Development (HUD) is not a lender. It is the governing body that regulates the HECM. If you are looking to explore your options for a HECM choose an experienced lender from the HUD-approved lender list.
State Lenders for Single Purpose Reverse Mortgages
Many state and local governments across the U.S. provide certain senior homeowners with a couple of common single purpose reverse mortgages or equity-based deferral loans. A property tax deferral and a deferred property loan are common. The first uses the equity a borrower has in his or her home and uses the cash out to pay property taxes; the second uses equity to pay for necessary home improvements or repairs.
- Kentucky has one of the lower tax burdens in the country and offers no statewide deferral program for seniors. Low-income seniors over 65 are urged to ask for possible programs at local tax collectors offices.
- For seniors that must make home repairs or improvement, they are also urged to look locally for rehabilitation loans based on their home’s value. Where such programs are offered borrowers are typically required to be at least 65 and have a very low income or prove a disability.
Reverse Mortgage Providers for Senior Citizens in Kentucky
Here is just a sample of lenders and the reverse mortgage products each offers:
Fifth Third Bank
This Cincinnati based company has locations in Kentucky and specializes in dealing with mature borrowers. Besides wealth management and investing services, senior homeowners may seek counseling for the government backed HECM and the Fannie Mae Home Keeper reverse mortgage.
Lexington Investment Mortgage Company
Lexington Investment Mortgage is a Kentucky based company that specializes in both traditional and reverse mortgages. Borrowers over 62 may qualify for the HUD HECM or the Fannie Mae Home Keeper, a similar government subsidized product that features slightly higher limits and does not exclude condo owners.
Wells Fargo Home Mortgage
This nationally recognized company not only is experienced in retail banking and services, but also provides the government subsidized reverse mortgages for qualified borrowers.