Rhode Island Reverse Mortgages

Your Home Equity Belongs in Trustworthy Hands

With the rise in reverse mortgage interest comes the need for more reliable lender sources. Any aspect of the financial business can spawn unsavory “businesses” and outright con artists. Seniors, unfortunately, are often targeted.

Rhode Island senior homeowners shopping for guidance in the reverse home mortgage market have a number of avenues through which to find a legitimate and experienced lender.

FHA Lender Loan Limits and How They Affect RI Borrowers

FHA mortgage limits are set on a county-by-county basis nationwide. These factor into the qualifications for a FHA-approved Home Equity Conversion Mortgage. For the most part FHA limits suffice for the average homeowner, that’s why over 90% of all reverse mortgages are the HECM.

Of the 5 counties in tiny Rhode Island all have FHA limits far above the national average, over $200,000 higher. This reflects the general regional home values.

RI HUD Lenders

Since the vast majority of reverse mortgage borrows have the FHA HECM, where does a borrower in Rhode Island find a reputable lender?

First, some people misunderstand what the HUD and FHA are. They are not mortgage lenders. You don’t go to HUD to apply for a reverse mortgage. These two agencies work hand-in-hand to offer consumer information and generally oversee the larger national housing industry with the main mission to make homeownership affordable for every American.

But HUD and the FHA do maintain searchable databases of approved lenders, financial companies that have proven experience with the Home Equity Conversion Mortgage.

Borrowers are urged to only use lenders from this list, available either on HUD’s website or from a mortgage counselor. Never pay a fee to obtain this lender list. The information is free.

Single Purpose Reverse Mortgages Available for Rhode Island Seniors

Half of all states offer a type of single purpose reverse mortgage in the guise of a property tax deferral. Traditional single purpose loans provide low-income senior homeowners with cash out of their home’s equity to pay for things like property taxes or home repairs. These programs are similar and originated through both state and local government agencies.

Rhode Island property taxes are levied locally and as such any types of tax deferrals are available through municipalities. Already in some locations seniors may qualify for property tax reductions.

Types of Reverse Home Mortgage Providers

This is a sample of the types of lenders Rhode Island homeowners are likely to find when planning their reverse mortgage.

  • Coastway Credit Union is a HUD-approved lender with experience in handling the federally insured HECM. As a credit union customers will find plenty of other personal and business products and services.
  • Ocean State Reverse Financing is also a HUD and FHA-approved lender. This regionally based company specializes in mortgages and sub-specializes in reverse mortgages for RI seniors.
  • Wells Fargo is one of the most familiar nationwide banks in the country. The Home Mortgage division originates two reverse mortgages, the HECM and the Fannie Mae Home Keeper.