Conventional Utah Reverse Mortgages
Many lenders now have “conventional” reverse mortgages that feature several of the same consumer protections but are not insured by the federal government. These types of reverse mortgages do require mandatory counseling and asset protection, meaning the non-recourse feature that limits the amount you owe to the value of the home.
These conventional reverse mortgages are also known as jumbo loans. Unlike the HECM, which is limited in range, the conventional Utah reverse mortgages either have no limit, or their limit is significantly higher, upwards of $3-4 million. For a higher value home, you’ll typically be able to access more equity from a conventional reverse mortgage than you would an FHA HECM.
Conventional reverse mortgage programs typically offer lower upfront costs, compared to HECM. This is especially true if you are taking payment as a lump-sum. The interest rate for a conventional reverse mortgage is a fixed margin above the LIBOR (London Interbank Offered Rate). There are some conventional reverse mortgage products that offer adjustable rates as well as fixed rates.
For additional details on these conventional Utah reverse mortgages, please contact one of our loan officers today for details on this and other programs. We can be reached by phone at 800-893-9540.