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Reverse mortgages provide senior citizen homeowners with a flexible option for situations in which they must create an income or “find” extra cash they simply don’t have saved. Often the equity in their homes is the most valuable asset. In the past this equity was only liquid once the home was sold. Reverse mortgages let seniors leverage their equity to create a monthly income or generate a one-time cash sum payout so they can afford a wide variety of costs and expenses.

Without an experienced lender to guide them, senior homeowners are entrusting their life savings, so to speak, to chance. Here’s a brief guide to types of Utah reverse mortgage lenders.

FHA Lender Loan Limits: How They Affect Utah Homeowners

FHA mortgage limits are based on county, type of home or residence and more. But in the business of reverse mortgages the local FHA limits are key factors in determining if homeowners qualify to “borrow” with the HUD or FHA Home Equity Conversion Mortgage.

For the average homeowner county FHA limits are typically more than adequate to finance the federally insured reverse mortgage and over 90% of all seniors with a reverse mortgage have this product.

Across the 29 counties of Utah FHA limits vary from many that align with the national average to a few that have remarkably higher limits. In counties such as Davis, Juab, Kane, Morgan, Utah, Wasatch, Washington and Weber, FHA limits range from $50,000 higher than the national average to $125,000 higher. Outstandingly higher limits are found in and around the counties that make up the Salt Lake City metro area. Here FHA limits sit $450,000 above the national average.

HUD Lenders in Utah

Part of HUD and the FHA’s duty to consumers is to inform and administer the Home Equity Conversion Mortgage. However, neither of these government entities is a bank or financial institution—you cannot apply directly to HUD for a reverse mortgage. HUD does offer a free and searchable list of HUD and FHA approved lenders that have experience with the HECM.

Caution: do not ever agree to pay money in exchange for the HUD lender list. This is freely available information. If you are unable to access the information via the HUD website, ask a local mortgage counselor for a list.

Single Purpose Reverse Mortgage Lenders for Utah Seniors

Along with 24 other states Utah offers a type of single purpose reverse mortgage that gives low-income seniors tax relief. Single purpose reverse mortgages by definition are typically originated by state or local governments and agencies, are lower in cost than conventional reverse mortgages and may only be used to pay critical expenses associated with homeownership, such as property taxes and code-related or emergency home repairs.

Individual counties levy their own taxes in Utah and each provides local low-income seniors with a property tax deferral option, similar to a single purpose reverse mortgage. Loan applications are handled directly through the county tax assessor’s office. Eligible seniors must be at least 65 years of age or disabled, have less than $22,000 in annual income, have no current liens against their home and hold the title/deed to the home. Property taxes may be deferred, with interest, as long as the owner resides in the home. Loans become due when the home is sold or the owner dies.

Types of Reverse Home Mortgage Lenders

While you’re shopping for a reverse mortgage keep a few things in mind: a wide variety of financial institutions are licensed to originate reverse mortgages. Remember the HUD lender list and choose wisely. Here is a sample of the types of lenders you’re likely to find in Utah.

  • EverBank Reverse Mortgage is a HUD-approved lender and one of the leading nationwide originators. The company’s specialty is reverse mortgages. Senior homeowners may choose from three financial options: the HUD HECM, the Fannie Mae Home Keeper and the EverBank proprietary jumbo option, the Reverse Select.
  • Mountain America Credit Union offers customers flexible reverse mortgage options and the experience that comes along with being a HUD approved lender. The company also offers an expansive menu of personal and business services and products.
  • Sun Valley Financial is a regionally-based full-service reverse mortgage lender. This HUD-approved provider offers customers the Home Equity Conversion Mortgage.