Improve your cash flow with a Reverse Mortgage

How do Reverse Mortgages increase cash flow?

Options to Improve Cash Flow

Lump Sum. You can choose to access money in a lump sum. This option is typically used to pay off a mortgage, but can also be used to periodically access money in a lump sum.

Income Payments. You can choose to receive tenure income payments (also known as lifetime income payments) or term income payments based on the length of the term.

Line of Credit. Depending on the amount of equity in your property, you can build a nest egg for retirement down the road by taking advantage of a growing line of credit.

The choice is yours—you can choose one option or any combination of the three options above. We can help you determine which option is best for you (based on your other financial resources) during a personal consultation. On average our clients increase their retirement cash flow by over $250,000.

Let us help you build a plan that provides you with a more secure and sustainable retirement.

Do You Want to Retire in Your Current Home or Relocate?

Do you want to spend your retirement in your current home or would you rather relocate to another area, stay in the same area and downsize, or buy a home that requires less upkeep?

With a Reverse Mortgage, you have a choice!

When considering a Reverse Mortgage to improve your retirement cash flow, you can choose to stay in your current home or purchase a new home.

Some common considerations when evaluating the best option for you is to determine if your current home is suitable for the long term. Is it too large?

Do you wish to relocate somewhere else?
Is the upkeep getting to be too much?
If you decide that you want to sell your current house and buy another home, you can do so with a Reverse Mortgage, by simply transferring the equity from the sale of your current residence.

Watch this short video to learn more about purchasing a new home with a Reverse Mortgage.

With a Reverse Mortgage, finding the home you wish to occupy for the long term results in the greatest financial benefit for you. Whether you decide to move or stay put, we can help you with calculations so that you can choose the best loan option to meet your needs.

Why choose Reverse Freedom for your Reverse Mortgage?

We know that you have a choice when it comes to Reverse Mortgage lending. So why should you choose us?

With Reverse Freedom, we treat you like one of the family and are focused on ensuring your security and certainty throughout your retirement. We spend the time getting to know you and your financial situation and goals so that we can structure a customized Reverse Mortgage solution that meets your specific needs.

Since 2008, we have focused solely on Reverse Mortgage lending and have become one of the top 25 Reverse Mortgage producers in the country. We have the experience and expertise to design and implement an effective solution that will meet all of your financial goals.

Our process consists of 6 steps. Our team is here to serve you.

Education and Learning

Our process begins with providing you with a thorough education on the various components of reverse mortgage planning. The reverse mortgage is a retirement planning vehicle, and it is important for us that you understand all the features and benefits. We will meet with you and take a thorough inventory of all the components of your household finances which include your retirement savings, social security, pension and any other income sources you have to support your retirement. We want to help you maximize your retirement income and sustainability with the resources you have accumulated for retirement. A reverse mortgage is a great planning tool and we want to make sure that it is tailor fit for your specific situation. Some of our clients are using a reverse mortgage as a strategic tool to increase their financial resources and supplement their retirement savings while others may be using a reverse mortgage to increase cashflow thru refinancing their traditional mortgage. A reverse mortgage can be useful to help with future long-term care needs that may arise. Your situation is unique and we take pride in learning how we can improve your retirement finances and security though a personal consultation. Following our meeting you will feel confident in the options available and the various ways to implement a reverse mortgage strategy. Our personalized approach to reverse mortgage lending is what sets Reverse Freedom apart from our competitors.

Independent HUD Counseling

If a reverse mortgage is the right solution for you, we will provide you with a list of HUD approved reverse mortgage counselors to take the next step towards financing a reverse mortgage loan for you. This is a necessary step in the lending process which allows you to receive additional insight and information from a third party outside of a mortgage originator. This is a protection HUD has put into place to make sure you understand all the details beyond the education that we provide you. Not to worry, this is not complicated. Most of our clients complete this counseling session within 45 minutes in the comfort of their home thru a phone call with a HUD counselor. This cost for this service typically runs between $125-150, and you pay the service directly. Once completed the counselor will provide a certificate of completion that allows us to work on an application for your reverse mortgage loan.


During the application process we will collect all the needed information to process your reverse mortgage loan. We will also request all the necessary documentation we will need to get loan approval. These items include a legal drivers license or ID card, social security verifications, income documentation, proof of homeowners insurance, and potentially other items that could be specific to your individual situation.


A formal appraisal will be ordered on your behalf following the submission of your application. The appraisal is a requirement and will determine the home value for the purposes of the reverse mortgage loan. The appraised value will determine the amount of money that is available in a reverse mortgage loan.


Upon receipt of your completed appraisal, and all the necessary documentation and verifications our loan will be submitted to underwriting for formal loan approval.


When we receive loan approval and all the final conditions are signed off by the underwriter, a closing will be scheduled to sign all the final loans documents. Your loan proceeds will be disbursed accordingly following a three day right of recission after you have signed notarized loan documents. If you have a purchase loan there will be no recession period.

Is a Reverse Mortgage right for you?

Should you consider a reverse mortgage?

Here are the top 4 reasons our clients decided to go with a Reverse Mortgage:

  1. They still owe money on their traditional mortgage. Paying a mortgage on a fixed income can be challenging. A Reverse Mortgage gives you the flexibility to leverage the equity in your home without requiring monthly payments.
  2. They want to improve their cash flow while preserving their retirement savings. A Reverse Mortgage gives you access to cash without depleting your savings or 401K.
  3. They want to avoid financial shortages down the road. Reverse Mortgages can help you plan for future expenses, such as long term care, without the fear of running out of money.
  4. They want to purchase a new home during retirement. With a Reverse Mortgage, you can purchase a new home while keeping your cash flow intact and adding money to your retirement.

A thorough consultation with our team can help you determine if a Reverse Mortgage will be beneficial to you and your retirement goals. In the meantime, here is a list of lending requirements for your review:

  • Age. At least one of the eligible borrowers must be age 62 or older. If you’re age 62 and your spouse is younger this program may still work for you but requires some investigating into the advantages and disadvantages of having a spouse under age 62.
  • House Value. FHA reverse mortgage loan programs currently recognize values up to $970,800. However, this does not mean you are not eligible if your property value is higher than $970,800. You can still qualify, using the equity portion of your house value up to $970,800. Home values and Reverse Mortgage loan amounts are determined by an appraisal. Note: Depending on your home’s value and your goals, there are other loan programs for high value homes that might be a better fit for you. These products, which have no minimum value requirements, can be beneficial when the home value is above $1,000,000. In addition, some proprietary loans will recognize values up to $10,000,000.
  • Interest Rates, Mortgage Balance, and Home Equity. Qualifications are also based on current interest rates and the outstanding loan balance(s) of your existing mortgage(s). Generally speaking, you need to have about 50% or more equity in your home to use a Reverse Mortgage to pay off your existing mortgage loan.
  • Primary Residence. Keep in mind that a Reverse Mortgage loan can only be financed on your primary residence; it will not work for investment properties or a second home.
  • Property Taxes, Homeowners Insurance, and HOA Fees. Borrowers for a Reverse Mortgage are responsible for on-going property expenses, including annual property taxes, homeowners insurance, and homeowners association (HOA) dues (if applicable). If you have been late on your property taxes or insurance payments in the past 24 months you may still qualify for a reverse mortgage loan, but it may require an impound account for property expenses which is referred to as a Life Expectancy Set Aside (LESA).
  • Type of Home. Most home types qualify for Reverse Mortgages. A borrower can finance a single-family home, FHA-approved condos, town houses, twin houses, duplexes, triplexes and even 4-plexes.
  • Credit Score. Your credit profile is a consideration when financing a Reverse Mortgage loan, but credit score is not the most important factor. In fact, we can finance much lower credit scores than traditional mortgage lenders.

Do Reverse Mortgages Deserve Their Bad Reputation?

Reverse Mortgages have gotten a bad rap, but why?

Prior to regulation, consumers didn’t have the protections they enjoy today. Fortunately, Reverse Mortgage products have changed dramatically over the years to the benefit of the consumer.

From 1961-1987, Reverse Mortgages in the United States were not regulated. Small banks and insurance companies financed reverse mortgage loans and each product was different. Moreover, products of the past did not offer the protections available to today’s consumers.

In 1988, Ronald Reagan signed a bill into law which changed the way Reverse Mortgage products work, providing many protections for today’s consumer that weren’t in place prior to regulation. The first FHA insured reverse mortgage loan was originated in 1989. Since then, HUD (the Federal Government’s Department of Housing and Urban Development) regulates and oversees the Reverse Mortgage industry and the FHA (Federal Housing Administration) insures Reverse Mortgage loans. These programs provide the guarantees and security retirees desire when deciding on a Reverse Mortgage, including maintaining ownership of the home.

Now, you can have peace of mind knowing that you can improve your retirement while also leaving the remaining equity to your heirs. If providing a legacy is on your mind we can help.

Check out our Myths Vs Facts page to learn more about common misconceptions

Watch this video to learn more about the safety of a Reverse Mortgage

Please feel free to contact us anytime with questions.