Phone: (800) 489-0986
Cell or text: (916) 502-0359

HECM and Jumbo Reverse Mortgage Specialists

The O’Connell team, Scott O’Connell and Maggie O’Connell offer expert reverse mortgage origination services local to Northern California and Northern Nevada. We have a combined 30 years of experience specializing in reverse mortgages.  The FHA Home Equity Conversion Mortgage (HECM) is recognized as the traditional option but with high California and Nevada home values and lower upfront costs than the HECM program, Jumbo or proprietary Reverse Mortgages have become increasingly popular. With our extensive experience and dedication to communication, thoroughness, knowledge of reverse mortgage guidelines and overall excellent customer service, you can have confidence your transaction will be in good hands.

You can eliminate mortgage payments, have additional fund and live the life you deserve!   So, my friends, if you own a home, with or without a mortgage and at least one borrower is at least age 62 (some programs 55), take advantage of the improved reverse mortgages now available.  We will give you the details, some low cost options, compare the HECM to the Jumbo or proprietary reverse mortgages  and provide an honest proposal to help you make an informed decision.

Jumbo Reverse Mortgages for these bay area counties: San Francisco, Marin, San Mateo, Santa Clara, Alameda, Contra Costa, Napa, Sonoma, Solano

“We will put our 30 years of Reverse Mortgage experience and expertise to work on your behalf!”   

Jumbo Reverse Mortgage Specialist California

Scott O’Connell, Vice President NMLS#250080 Learn more about The O’Connell Team

Who do you want to coordinate your reverse mortgage?

So you’re considering a reverse mortgage because you have decided that life is too short. You have equity in your home and you should be enjoying life more and not living like a pauper. Where do you start? What is the first step? How do you choose the person who will help you through the process? You certainly don’t what to be led down the wrong path by some newbee in the industry who doesn’t know what they are doing. You thought one of those big companies who advertise on TV are the way to go, after all, they are big! But after talking to someone on the other side of the country who wants to sign you up and pass you along the processing assembly line, you realize that’s not for you.

Congratulations, you found someone who will work with you from start to finish, who represents a federally chartered bank, who has many years experience originating HECM reverse mortgages and Jumbo options and hundreds of raving fans?  Someone who will give you the personal attention you need in such an important transaction as a reverse mortgage.

Do yourself a favor,  Contact Maggie O’Connell

Reverse Mortgage Information

Getting a reverse mortgage is an important decision and understanding how reverse mortgages work is the first step.

Find out how Reverse Mortgages work

The reverse mortgage loan process involves many steps explained here:

What is involved in the HECM reverse mortgage loan process?

Revere Mortgage counseling is required before starting the loan process and in California must be completed prior to signing the application.

Find a Reverse Mortgage Counselor

Get answers to your reverse mortgage questions:

Reverse Mortgage Frequently Asked Questions (FAQ)

Learn the various interest rate options and guidelines:

Reverse Mortgage Interest Rates

HECM LOAN LIMITS INCREASE FROM $822,365 TO $970,800 ON JAN 1, 2022

This is great news for older homeowners with higher value homes. The new maximum claim amount of $970,800 is an increase from $822,365 in 2021.  The maximum claim amount is the highest home value we can use to calculate HECM proceeds. Proceeds for the loan are based on age of youngest borrower and expected interest rate. As interest rates rise, the principal limit is reduced so now is a good time to pursue the reverse mortgage. If you have an existing reverse mortgage, I can help you determine if you can increase your line of credit and reduce the interest accrual rate on your loan balance through a HECM refinance.

To determine the amount available to you, call Maggie at 800-684-9438

2022 Changes to HECM Reverse Mortgage

When it comes to reverse mortgages, one thing for certain is change.. It’s understandable that a unique and fairly new program such as the HECM reverse mortgage will encounter changes as it plays out for real people and the programs insurer, HUD. The first change to note is in the Initial Mortgage Insurance Premium (IMIP) and the Annual or Ongoing Premium.  The IMIP is now 2% of the home value up to the maximum claim amount of $970,800 for all borrowers, whether your full draw amount is 60% of the principal limit or not. This is a savings for those who had high draws and a cost increase for those with draws below 60%.  The ongoing mortgage insurance premium as dropped from 1.25% to .5% on the loan balance.  This is a very large drop in overall costs for those who carry high mortgage balances and puts the full accrual rate competitive with conventional and other FHA loans.

A very interesting change that potentially affects borrowers is twofold.  HUD lowered the 5.06% floor to 3% so now it’s more important than ever to get multiple quotes as the margin quoted directly impacts the amount you receive.  Lower margins and rates result in larger principal limits or funds to the borrower.  The second and very important change is that HUD has also lowered the Principal Limit Factors, which is the percentage of the value of the home that homeowner’s will receive, but that might be offset by the lower floor on the rate depending on your situation.  Please feel free to give me a call so I can explain how it impacts you as every borrower situation is unique.

Maggie O’Connell

800-489-0986

Reverse Mortgage for home purchase makes sense for Seniors.

Are you aware that you can purchase a new home using a reverse mortgage? It’s a great way to ‘right-size’, move closer to family or services or own a more energy efficient home. Here’s how it works: Your down payment is approximately 40 to 50% of the home price (up to the FHA maximum value of $970,800) and the HECM reverse mortgage will take care of the remaining funds needed. The beauty is, you don’t have to make mortgage payments! When the last homeowner leaves the home permanently or you sell, the balance is due which includes the accrued interest and mortgage insurance over the years. So if you sell your home, you can use the proceeds for the down payment and put the rest of the money in the bank for additional retirement savings. You are the owner and can sell at any time or live there for the rest of your life with only having to pay the property taxes, homeowner’s insurance and HOA dues. Thought you were stuck in your old house forever!!! Think again! Click below to learn more.

Reverse Mortgage HECM for Purchase Guidelines

Reverse Mortgage Interest Rate Options

The HECM adjustable reverse mortgage is a monthly adjusting rate. The rate cannot increase more than 5 points above the start rate and there is no periodic cap.

The key advantages of the HECM variable interest rate are is the availability of a line of credit so funds can be accessed in the future.  The line of credit growth is a definite advantage as the growth in the credit line can be quite substantial over time. The increase in the LOC is the same accrual rate as on the loan balance.  It is based on the current rate plus the mip rate.  An amortization schedule will be provided that projects this growth and you will be very pleased with the compounding growth of available funds.

A lump sum draw is required with the HECM fixed interest rate. There is no line of credit with the fixed rate option.

To receive an analysis, Call Maggie at 800-489-0986

Reverse Mortgage for Home Purchase has benefits for homebuyers and Realtors alike

Reverse Mortgages are a helpful financial tool that can be used to purchase a home. The HECM Purchase Loan is for those who don’t want to make mortgage payments and also want to minimize the cash requirement for the purchase transaction. The down payment requirement is calculated based on age of youngest borrower or non-borrowing spouse, home value up to the maximum claim amount limit and current expected interest rate. Request down payment calculation

Realtors, buyers and sellers can have confidence in the HECM Purchase program by understanding clear guidelines and starting the process correctly from the beginning.  The key to a successful transaction is a Reverse Mortgage Originator  coordinating the transaction from start to finish.

To qualify, you must be at least 62 years old, but if you have a younger spouse, you can take advantage of the new non-borrowing spouse rules for the FHA Insured HECM Reverse Mortgage. The down payment is higher than traditional mortgages for the simple reason that you don’t have to make mortgage payments, so the equity in your home is used to pay the loan back after you leave the home permanently. Because no payments are made while you live in your home, you must have equity from the beginning. The younger you are, the more money you need to contribute to the transaction because of your longer life expectancy. The income qualification is lower than traditional mortgages because there are no mortgage payments added to your debt ratio. With the new HECM Financial Assessment guidelines in place, you must show a good payment history for past housing & debt expenses. It’s easy to find out if you qualify and how much house you can afford by giving Maggie a call.
New Rules Protecting Non-Borrowing Spouses

To qualify for a reverse mortgage, one must be at least 62 years.  In the past, when there was a younger spouse, the couple did not qualify for the HECM.  While it’s best for both husband and wife to be on title and borrowers on the loan, there are now protections for younger spouses.   It is to be evaluated seriously as the younger spouse must deed off title.  It is important to talk to an attorney to  properly set up the deed or living trust so the non-borrowing spouse (NBS) can be quickly added to title if the ‘borrowing’ spouse passes.  The younger spouse has the right to remain in the home indefinitely during what’s called a deferral period if all the requirements are met. The surviving spouse must transfer the home into their name and become the legal owner within 90 days of death. Any funds remaining in the reverse mortgage account will not be available to the younger spouse.

In order for the Deferral Period to apply to a Non-Borrowing Spouse, the NBS must:
1. Have been the spouse of the borrower at the time of loan closing and remain married for the duration of the borrowing spouse’s lifetime;
2. Have been properly disclosed at origination and specifically named as a Non-Borrowing Spouse in the loan documents; and
3. Have occupied, and continue to occupy, the property as the Principal Residence.

Reverse Mortgage Financial Assessment

HUD has issued a reverse mortgage financial assessment for HECM reverse mortgage borrowers. HECM lenders are to evaluate the borrower’s willingness and capacity to timely meet their financial obligations and to comply with the mortgage requirements. Those mortgage requirements include paying property taxes, homeowner’s insurance and keeping up home maintenance.

Preliminary qualifying questions include:  (more…)

Jumbo Reverse Mortgages are available in California, Nevada, New York & multiple states
  • This new proprietary, non-FHA Jumbo Reverse Mortgage called “HomeSafe,” is available in these states: · Arizona · California · Colorado · Connecticut · District of Columbia  ·  Florida · Hawaii · Georgia· Idaho · Illinois · Louisiana ·  New Jersey · Oregon ·Pennsylvania · Rhode Island · South Carolina · Texas  ·  Virginia  ·  Washington · New York
  • HomeSafe Select is currently available in California and Florida (line of credit option)
  • HomeSafe Second is available in California ·  Florida ·  Texas ·  South Carolina
  •  Maximum principal limit is $4 million
  • No restriction to cash draw in first year
  • “Equity Elite” by Reverse Mortgage Funding, LLC “RMF” available for borrower’s age 60 + in California, Nevada, Oregon, Washington, Montana, Arizona, Colorado, New Mexico, Illinois, Michigan, Ohio, Pennsylvania, New Jersey, Rhode Island, Connecticut, Virginia, South Carolina, Georgia & Florida. Equity Elite is available for age 62+ in Utah, Texas and North Carolina
  • It has a fixed interest rate lump sum option and variable rate line of credit option (in limited states- HomeSafe option only) – call for detailed interest rate structure
  • There is no mortgage insurance premium (mip)
  • Non-FHA approved condos valued over $500,000 that pass the spot condo requirements will be eligible
  • Available for Reverse Mortgage for Home Purchase
  • New Construction is acceptable
  • Reverse Mortgage Counseling is required.
  • Financial Assessment must be completed.
  • Call to have your scenario run through our Jumbo Reverse Mortgage Calculator