Reverse Mortgage Loans

Reverse Mortgage loans give seniors the ability to live in their home, with no monthly mortgage payments, by converting home equity into cash while still maintaining ownership!

Louisiana Licensed Mortgage Company.
Mississippi Licensed Mortgage Company.

How does it work?

A reverse mortgage loan allows you to turn some of the equity in your home into cash to improve your financial situation. With a reverse mortgage loan, you will remain on title and can stay in your home without making monthly mortgage payments during the loan period. The borrower will be required to pay for property taxes, home insurance and home maintenance. The loan balance becomes due upon the occurrence of other events including non-compliance with the loan terms.

You can make payments on a Reverse Mortgage to prevent the principal from increasing. However, unlike regular mortgages, if you are forced to miss a payment, you will not be penalized. That means Reverse Mortgages come in handy in times of financial strain, by offering flexibility that a regular mortgage does not.

This federally-insured loan offers multiple ways to receive the proceeds and gives you the ability to spend the cash as needed. Common uses of Reverse Mortgage loans include:

  • Purchase a new home
  • Paying off debt
  • Cover costly medical bills and prescriptions
  • Home repairs and modifications
  • Delay Social Security benefits²
  • …and much more!


A financing option that can help you sell more homes

The Home Equity Conversion Mortgage (HECM) for Purchase option (nicknamed H4P) can turn shoppers age 62+ into buyers. That’s because it allows them to keep more cash than they could with a conventional mortgage or all-cash purchase. This makes your clients more likely to buy your homes.

Comparing three ways to purchase a new home

All Cash Traditional mortgage H4P
Why? Buyer owns home free and clear
  • Option to make a minimum down payment and limit upfront investment
  • Builds equity as they pay down loan
  • Flexible repayment feature: monthly P & I payments are optional
  • Gives the buyer the flexibility to get the home they really want
  • Allows them to keep more assets as cash on hand
Why Not? Ties up a larger portion of their money
  • Monthly mortgage payments diminish the buyers cash flow
  • They buyer’s equity in the home decreases if P & I payments are deferred, as the loan balance increases over time.
  • Requires a larger down payment than traditional mortgage option

* Borrower is responsible for property taxes, homeowners/Flood Insurance payments and property maintenance in order for the loan to remain in good standing. A HECM is a home-secured loan that must be repaid upon default or a maturity event, such as when the home is sold, all homeowners have passed away, or the last surviving borrower no longer lives in the property.

Call me to learn how the HECM for Purchase Program can help you grow your sales.

Important features of a reverse mortgage loan include:

  • Proceeds from a Reverse Mortgage loan are tax-free. Consult your CPA
  • There are multiple ways to receive the loan proceeds, either as a line of credit, a term payment, a tenure payment or lump sum.
  • Live in your home with no principal & interest mortgage payments.

Qualifications include:

  • The borrower must be 62 years or older (a nonborrowing spouse may be under age 62)
  • The home must be and remain the borrower’s primary residence
  • The borrower must own the home
  • The borrower must meet the financial requirements of the HECM program

Ready to get started?

Contact a Reverse Mortgage Specialist Today!

Alison Calamia
Louisiana and Mississippi

Assistant Vice President, Reverse Mortgage Loan Officer

Phone: (504) 289-6464
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