A Reverse Mortgage is a unique loan that allows you to convert a portion of the equity in your home into cash, with no repayment required as long as you own the home, live in it as your primary residence, pay your taxes and insurance, and maintain it. Unlike the monthly payments of a traditional “forward” mortgage, the cost of borrowing the money is simply added to your loan balance. You remain in title and in control. 

The amount of money available to you is determined by a formula that considers your age, the type of reverse mortgage, your home’s value, up to Federal Housing Administration (FHA) limits, and current interest rates. The money received is tax-free and usually does not affect Social Security or Medicare benefits. It is always recommended that you consult with your tax advisor.

There are several disbursement options , and you can revise your plan as your needs change. The loan becomes due when you move, sell, or pass away.  At that point the entire balance is due as a balloon payment. It may also come due if you do not pay your taxes and insurance or if you do not maintain the property. At the time of your death, your heirs can sell, refinance or use other assets to pay off the loan balance, and any remaining equity is theirs. 

Qualifications:

• Homeowners must be at least 62 years old.
• The property must be your primary residence and owned by you.
• Generally, your home must be a single-family residence, a 2-4-unit building, or an approved condominium.
• Manufactured homes may qualify if they are built after 1976, have an FHA-approved foundation, and are treated and taxed as real estate.
• There are no income or credit requirements.
• The amount you receive depends on your age, the type of reverse mortgage, the value of your home, up to FHA limits, and interest rates.

We offer the most popular reverse mortgage programs that are currently available. We can objectively help you analyze your situation so you can decide on the program that best meets your needs.  The types of reverse mortgages available are:

• FHA Home Equity Conversion Mortgage (HECM) Monthly ARM – The monthly HECM is the most popular reverse mortgage option
• FHA HECM Fixed Rate Plan
• FHA HECM for Purchase 

Aside from the requirement to pay off your existing mortgage, there are no restrictions on how you can use reverse mortgage funds – it’s as flexible and individual as you are. It is your money and you choose how to use it. A reverse mortgage can dramatically change the quality of life for many senior homeowners. Common reasons for obtaining a reverse mortgage include:

• Supplementing your monthly income 
• Remodeling or making repairs
• Paying off an existing mortgage (Required) 
• Paying off credit card balances
• Meeting property tax obligations
• Traveling
• Purchasing a car or motor home
• Paying for help around the house
• Funding health care and prescription drugs
• Purchasing long-term care insurance
• Providing college tuition for you, your children, or grandchildren

You can receive your cash in ways that best suit your needs. Choose among several disbursement options:

• Lump sum – for making a major purchase.  (Paying off an existing mortgage is required).
• Line of credit – for cash only as you need it.
• Monthly payments for as long as you stay in the home (tenure) - duration varies based on certain conditions.
• Term – a set monthly payment for a set period of time.
• Combination – from the options above, design a plan that’s just right for you.
• Changes – if your situation changes, you can change your disbursement option (certain restrictions apply).

For the loan to continue with any of these disbursement options, the borrower(s) must own the home and live in it as a primary residence. Additionally, taxes and insurance must be paid and the property maintained.

As part of the application process, HUD requires that you participate in a reverse mortgage counseling session with a HUD-approved counselor.  This counseling can be done by phone and is required as a consumer protection measure.  This session will give you an opportunity to talk with an unbiased third party to help you decide if a reverse mortgage is right for you.

At Frontier Bank, we are committed to providing personal, exceptional service. We promise to make the process of obtaining a reverse mortgage as pleasant an experience as possible.

• Prior to applying for a reverse mortgage we will spend as much time as required so you can feel comfortable with your decision to obtain a reverse mortgage.
• We will make every effort to return your phone call or email on the same day it is received.
• One person will handle your entire transaction from application to closing.
• Though the Federal Housing Administration (FHA) sets the interest rates, closing costs may vary slightly from lender to lender. We will look at competitive quotes and do our best to match them. We do not charge an application fee. In most cases, all costs can be financed, and that means no upfront cash is required to process your loan.  A counseling fee cannot be financed and may have to be paid at the time counseling is performed.
• Our reverse mortgage specialists have closed hundreds of these loans over the last several years.

We have two reverse mortgage loan specialists to serve you: Jerry Dawson in Washington and Doug Micciche in Oregon. They can meet with you at your home or at any of our Frontier Bank locations. They will thoroughly explain the features, benefits, disbursement options, and costs of the various plans available. Your family, friends, or financial advisors are always welcome to join in this meeting. It is a good idea to seek the advice of those you trust the most.

Jerry or Doug will handle all the paperwork and see the process through from application to closing. You can relax, and let Frontier Bank take care of the rest!

For information about reverse mortgages on properties located in Washington, contact:

For information about reverse mortgages on properties located in Oregon, contact: