South Carolina Reverse Mortgages

Types of Lenders in Your Area

Reverse mortgages are on the increase and prove advantageous for many senior homeowners. But a senior’s home equity can be worth hundreds of thousands of dollars. A key step toward borrowing a reverse mortgage must be finding a legitimate and experienced lender. In South Carolina, there are a number of avenues to a good lender as well as a wide variety of financial institutions designed to originate reverse mortgages.

FHA Lender Loan Limits: What They Mean to SC Borrowers

FHA mortgage limits are a key factor in determining a borrower’s eligibility for a federally insured Home Equity Conversion Mortgage. These limits are set county-by-county across the country and reflect local home values. In most cases the FHA limits are adequate for over 90% of all homeowners. Those for whom they are too restrictive are homeowners with very high-value homes. In these cases, homeowners seek alternative reverse mortgage products that offer more flexibility.

Most of the 46 counties in South Carolina have FHA limits similar to the national average. Where they differ is around popular areas such as Charleston, Hilton Head and Georgetown.

SC HUD Lenders

HUD and the FHA administer the very popular Home Equity Conversion Mortgage. Between 90 and 95% of all reverse mortgage borrowers use this flexible product. Fortunately, HUD provides consumers with a free and searchable online FHA-approved lender list. This ensures that senior homeowners are able to find legitimate and experienced lenders whose track records are proven.

Borrowers may find this list online via the HUD website or from a mortgage counselor. Never pay money to obtain the HUD lender list. This is free information.

Single Purpose Reverse Mortgage Providers Available in South Carolina

Twenty five states offer a type of single purpose reverse mortgage that lets them leverage the equity in their homes to pay property taxes or make necessary home improvements, sometimes call property rehabilitation.

South Carolina property taxes are levied locally and currently the only “break” given is a Homestead Exemption for seniors over 65.

Types of Reverse Home Mortgage Providers in South Carolina

A wide variety of financial institutions may originate a reverse mortgage, including retail banks, mortgage brokers, credit unions, as well as regional and national companies. This is a sample of the types of providers borrowers are likely to come across.

  • Beach First National Bank is a HUD-approved lender for the federally insured Home Equity Conversion Mortgage. This company is headquartered in South Carolina and also provides customers with personal and business products and services.
  • Financial Freedom is one of the leading nationwide reverse mortgage companies and is a top volume dealer. Customers may choose from three of the most popular and flexible reverse mortgage products: the HECM, the Fannie Mae Home Keeper and the Cash Account Advantage. This last product is FF’s proprietary jumbo reverse mortgage and it in one that is often originated by third-party lenders that wish to offer customers a jumbo alternative.
  • Sidus Financial has branch offices in about a dozen states and specializes in reverse mortgages. Sidus is HUD approved to originate the HECM.