How to Find Experienced Loan Officers
Reverse mortgages are on the increase. In order to assist senior homeowners lenders must be experienced and present an array of reverse mortgage opportunities.
NC FHA Lender Limits
FHA mortgage limits matter significantly to borrowers exploring their options for a HUD Home Equity Conversion Mortgage, the number one product in the country. FHA limits are set on a county-by-county basis across the country and closely reflect local property and home values. For most HECM borrowers the FHA limits are sufficient for them. For those with very high-valued homes, sometimes the county limits are far too restrictive, which sends them looking for proprietary reverse mortgages.
The FHA limits across North Carolina are some of the most variable and again reflect nuances in home value from region to region. Only about a third of NC counties are limited to the national average. In popular areas such as Asheville, Hendersonville and Charlotte, FHA limits are about $30,000 higher. Along the Outer Banks you’ll find some FHA limits $200,000 higher. In robust areas like Raleigh-Durham and Chapel Hill seniors will work with FHA limits about $50,000 higher.
HUD Lenders in North Carolina
Since the majority of reverse mortgages are the HUD Home Equity Conversion Mortgage the need for experienced and legitimate lenders is high. The reverse mortgage business, unfortunately, draws a significant number of unscrupulous “businesses” and illegitimate con artists.
Tips for finding a HUD HECM lender in North Carolina:
- Understand that HUD or the FHA are not financial lenders.
- HUD does provide an HECM approved lender list searchable by state.
- Find this free list on HUD’s website or ask a mortgage counselor.
- Do not ever pay money for a HUD reverse mortgage lender list.
Single Purpose Reverse Mortgages Available to NC Seniors
In half of all states low-income senior homeowners have access to a couple of homeowner programs that are very similar to a single purpose reverse mortgage in terms and costs. For example, a common program is an elderly property tax deferral. However, in North Carolina, while there has been legislative motion toward the addition of an elderly property tax deferral, currently the program is a Homestead Exemption.
The North Carolina Housing Finance Agency administers the Single Family Rehabilitation Program. Elderly homeowners must qualify for local income limits. Lenders are local municipalities and aid agencies. This is a combination deferral-forgiveness loan.
Types of Reverse Mortgage Lenders Available in North Carolina
Reverse mortgage lenders come in a variety of types. Here are a representative few.
- Bank of America represents the lenders that are retail financial businesses that provide a wide range of products and services for personal and corporate clients. Mortgages and reverse mortgages are a vital part of BOA’s business. Clients have two options for reverse mortgages: the HUD HECM and BOA’s proprietary Senior Equity Reverse Mortgage.
- Financial Freedom is one of the leading nationwide mortgage lenders with one of the highest volumes and a HUD approved lender. Seniors shopping for a reverse mortgage have three of the most popular types of reverse mortgages to choose from: the HUD HECM, the Fannie Mae Home Keeper and the Cash Account Advantage. This last option is FF’s own proprietary jumbo reverse product, which is also commonly originated by lenders across the country.
- Sidus Financial is headquartered in Hickory, North Carolina, but has branches throughout the southeast to serve customers. The company’s reverse mortgage business is focused on senior education, first, then fitting the homeowner with the right type of reverse mortgage to satisfy their needs and goals.