Reverse Mortgage
- Primary Residence
- Traditional
- No Min FICO
- Ages 55+
Reverse mortgages are loans designed for homeowners aged 55+ (or 62+ depending on the program) that allow them to convert part of their home equity into cash. Borrowers retain ownership of their homes and are not required to make monthly mortgage payments. The loan balance grows over time and is repaid when the home is sold or the borrower no longer occupies it as a primary residence.
This program is ideal for buyers who:
- Want to access home equity without monthly payments.
- Plan to occupy the property as their primary residence.
- Seek financial flexibility for retirement, debt payoff, or renovations.
Scenario | Credit Score | Min Age | Max Loan | Rate Type | Notes |
|---|---|---|---|---|---|
HECM (FHA-Insured) | N/A | 62+ | FHA Limit | Fixed or ARM | FHA-insured, 2% upfront + 0.5% annual MIP, counseling required. |
HomeSafe Standard | 600+ | 55+ (varies) | $4M | Fixed | No MIP, min $200K, simplified review ≥780 FICO. |
HomeSafe Intro | 600+ | 55+ (varies) | $4M | Fixed | First-time borrowers, quick qualification. |
HomeSafe Select | 600+ | 55+ (varies) | $4M | Adjustable | Line of credit (25–100%), $20 monthly fee. |
HomeSafe Second | 640+ | 55+ (varies) | $4M | Fixed | Second lien only, must have current 1st loan. |
Credit & Financial Assessment |
|---|
FICO Not a determining factor (program is primarily equity/asset-based). |
Ratios Flexible; focus is on collateral value and exit strategy. |
Credit Score | Assessment |
|---|---|
≥780 | Full financial assessment required (credit, income, and property charge history). |
600–779 | May qualify for simplified financial assessment. |
<600 | Requires full Life Expectancy Set-Aside (LESA) for taxes and insurance. |
Residency Eligibility |
|---|
Eligible
|
Ineligible
|
Term Type | Structure | Prepayment Penalty |
|---|---|---|
All Programs | Negatively amortizing (balance grows over time) | None |
HECM | FHA-insured, non-recourse | None |
HomeSafe (All) | Proprietary, non-recourse | None |
Property Types |
|---|
Eligible
|
Ineligible
|
Counseling Requirements |
|---|
HECM HUD-approved HECM counseling prior to processing. |
HomeSafe State-specific reverse counseling through FOA-approved agencies. |
Program | Disbursment Type |
|---|---|
HECM | Lump sum, line of credit, tenure or term payments |
HomeSafe Standard / Intro | Lump sum only |
HomeSafe Select | Line of credit (25%–100% draw) |
HomeSafe Second | Lump sum at closing (may take less than qualified) |
Disclaimer – This matrix was published on 10/02/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.
Contact Loan Officer
Alexis Andrade
Mortgage Loan Officer
NMLS #2553405
alexis@sjmorganple.com