Private Reverse Mortgage

Private Reverse Mortgage2022-11-04T11:39:25+00:00

We have created a streamlined and efficient loan program that allows us to quickly process and fund with the least amount of red tape, while still providing the benefits of a reverse mortgage.

Reverse Relief is an ideal program for clients that are seeking a loan that allows for no monthly payments*, while providing for the borrower to remain in the home. Our private reverse mortgage provides a solution when a traditional mortgage is unattainable due to property condition, age restrictions, termite problems, processing delays, vesting issues with an incapacitated borrower, or other onerous restrictions. HCS Equity’s own Reverse Relief is a solution that provides clients payment relief and extra capital, while preserving their ownership of the home.


*Reverse Relief features a 5-year Maturity Date on the loan. All outstanding debt is due at the 5-year mark or upon other Maturity Events detailed in the loan documents. Please inquire for more details, Reverse Relief is a unique loan program.

Additional Benefits Include

  • No minimum age requirement – all borrowers are welcome
  • Lending to Trustees, Fiduciaries, Estates, and Conservators without a personal guarantee or taking on liability
  • Properties in substandard condition (such as broken windows, roof issues, deferred maintenance, or hoarders) are acceptable
  • No termite or other repairs are typically required
  • Appraisals waived for most properties, so no need to invade a homeowner’s privacy during a difficult period
  • No required escrow account for taxes/insurance (LESA)
  • Prior mortgage lates, bankruptcy, and default events are generally acceptable with no minimum credit score requirement
  • Funding in as little as 18 days vs. the typical 2-3 months for a traditional reverse loan
  • Very limited paperwork required and very simple processing
  • Lending on all types of properties- Single Family, units, mixed use, and condos (FHA approval not required)
  • Funds can be used for any purpose by the borrower including end of life care, investment purposes, legal expenses, medical costs, payment of life insurance premiums, normal day to day bills, in-home care giving.

FAQ

What makes Reverse Relief different than a typical reverse mortgage?2022-11-03T13:59:50+00:00

Reverse Relief is a private reverse mortgage that is not guaranteed by a government agency such as FHA or a FDIC bank. Capital for this loan program comes from alternative sources, which eliminates much of the red tape and delays that are typically found on traditional reverse mortgage programs. The private funds allow HCS Equity the flexibility and speed to complete unusual transactions that normal lenders cannot fund.

Is there any sort of prepayment penalty on the Reverse Relief program?2022-11-03T14:00:15+00:00

No, the Reverse Relief loan can be paid off at any time before the Maturity Date without any sort of prepayment penalty or minimum months of interest due. You can pay any amount desired towards the principal during the term of the loan, although funds cannot be withdrawn again.

Is reverse mortgage counseling required?2022-11-03T14:00:37+00:00

Yes, a HUD approved reverse mortgage counseling session is required to be completed 7 days before HCS can process the loan. A typical session will last less than 90 minutes and can be completed via phone. You will receive a list of providers to choose from. The cost of the session will be at the borrower’s expense and paid via credit card or check by phone at the start of the session.

Is an appraisal or termite report required for Reverse Relief?2022-11-03T14:00:59+00:00

In most cases an appraisal and termite report will NOT be required which saves time and costs. Determination of the requirement for either inspection will be determined by HCS Equity.

Is property condition considered for the loan?2022-11-03T14:01:21+00:00

Property condition will be factored into the value of the home, but HCS Equity is not governed by the same strict guidelines that traditional reverse mortgages require. Items such as peeling paint, substandard roof condition, broken windows, missing flooring, empty pools, debris around the property, red tags on title, and other items that normally cause issues with traditional lenders will not hamper HCS Equity’s ability to provide a mortgage.

What can funds be used for?2022-11-03T14:02:15+00:00

The funds to the borrower from a Reverse Relief loan can be used by the borrower for any purposes they wish. Home improvements, living expenses, medical bills, helping out family, settlement of other debts, forward mortgage relief, or many other uses are allowable.

Do you offer any other loan programs except a lump sum loan such as a line of credit?2022-11-03T14:02:51+00:00

HCS Reverse Relief is only offered as a lump sum, fixed-rate loan. Interest, servicing fees, and other charges are applied on the full outstanding balance as of the date of funding. We do not offer an equity line program or “draw” type of loan.

When is my loan due?2022-11-03T14:03:23+00:00

Reverse Relief is unique in that our loan has a Maturity Date at the 5-year mark. This means that full outstanding loan amount is due and payable at that time – including the principal, all accrued interest and monthly servicing fees. There are several other Maturity Events such as death of the borrower, change of use of the property, or a sale/transfer of the home. Please inquire for further details.

What happens if I need additional capital during the original loan term?2022-11-03T14:03:48+00:00

You can always contact HCS Equity to review your situation during the term of the loan to determine if additional capital can be provided.

How do I know how much I owe?2022-11-03T14:04:21+00:00

A monthly mortgage statement is sent out that details the loan balance as of that month, interest rate, term and other important information. In addition, the loan servicer can always provide a payoff demand at any time.

Will I receive a 1098 for interest on the loan?2022-11-03T14:04:45+00:00

You will only receive a 1098 for the interest on the loan when some form of payment is made. This can be on the payoff of the entire balance, or any other partial payment made prior. All payments are applied to interest due first.

How much is the monthly servicing fee?2022-11-03T14:05:08+00:00

The monthly servicing fee is $30.00 per month, and is added to the outstanding loan balance. It is collected at time of loan payoff.

Is there an age restriction on this program?2022-11-03T14:05:26+00:00

The Reverse Relief program does not have any minimum age requirement.

Is there a minimum or maximum loan amount?2022-11-03T14:05:50+00:00

The minimum loan amount HCS Equity will provide is $150,000. The value of the property will determine the maximum loan amount available.

Is there any mortgage insurance up-front or monthly?2022-11-03T14:06:09+00:00

Unlike FHA and many traditional reverse mortgage programs, Reverse Relief does not charge monthly mortgage insurance or any type of financed up-front mortgage insurance premium. This can provide a huge savings on homes that are in high-cost areas.

How quickly can HCS fund a Reverse Relief?2022-11-03T14:06:36+00:00

A typical loan will take about 18-21 business days to complete due the required wait times from initial disclosures, mandated reverse mortgage counseling session, and 3 day funding recession.

Do I still own my own house?2022-11-03T14:06:55+00:00

Reverse Relief is secured just like a normal mortgage (Deed of Trust) on the property. HCS Equity does not have any ownership in your home, and it may be sold or refinanced at any time.

What happens when the 5-year Maturity Date is reached?2022-11-03T14:07:13+00:00

At the conclusion of the 5 Year term, all accrued interest, principal, and servicing fees will be due in full. You will receive a notice at least 90 days in advance of the Maturity Date reminding of this event. You will need to either refinance into another loan, sell the property, or make other arrangements.

What happens if I die before the 5 years?2022-11-03T14:07:45+00:00

The estate will have 6 months to pay the loan in full, from the date of death.

Can I lose my house to foreclosure?2022-11-03T14:08:02+00:00

Yes, your home can be lost to foreclosure during the term of the Reverse Relief loan or after the Maturity Date. It is important to read the loan documents and fully understand the terms of the Reverse Relief mortgage, including the importance of paying property taxes and hazard insurance on time.

Can my rate go up or down during the term of my loan?2022-11-03T14:08:27+00:00

Reverse Relief is a fixed-rate loan program. The interest rate on your loan documents will not change during the term of your loan. Interest accrues and compounds on the outstanding balance based on the fixed rate represented on your loan documents.

Do I still have to pay my property taxes and hazard insurance?2022-11-03T14:08:54+00:00

Yes, you are still responsible for paying all property taxes and hazard insurance for the home. The Reverse Relief program does NOT impound these payments, and they are required to be kept current. If your taxes or insurance are not paid on time, HCS Equity has the right to call the loan due or obtain force-placed hazard insurance at its own discretion.

Does my property need to be free and clear of debt to obtain a new Reverse Relief mortgage?2022-11-03T14:09:17+00:00

No, you can have an existing mortgage on your property and Reverse Relief will retire the existing debt as part of your new mortgage. This is a great way to relieve your monthly debt, obtain funds to fix up your home, maintain a comfortable lifestyle, or help out your family.

Do I have to have income documentation or assets to obtain a Reverse Relief?2022-11-03T14:09:40+00:00

No, HCS Equity does require traditional income documentation such as tax returns, paystubs, or bank statements. The borrower should have sufficient monthly income to maintain the property tax and hazard insurance payments.

Is a credit report required?2022-11-03T14:09:58+00:00

A credit report is necessary, but Reverse Relief does not have a minimum credit score requirement.

Are my heirs liable for this loan if my loan equals more than my home is worth?2022-11-03T14:10:14+00:00

No, your heirs or estate are not liable for this debt in the event of negative equity.

Can my property remain in my trust?2022-11-03T14:10:33+00:00

Yes, your property can be in an irrevocable or revocable living trust.

What happens if I am not able to sign for myself?2022-11-03T14:10:52+00:00

HCS Equity has been providing capital to Trusts and Estates for over 20 years. We are well versed in working with trustees, court appointed conservators, fiduciaries, attorneys, or other family members that may be involved in this transaction.

Looking To Get Started?

Contact us today for more information regarding any of our loan products. As direct lenders, we make quick approval decisions, and can provide funding in as little as 7-10 days. We are available via phone or email anytime of the day or night.

Private Loan Process

*This is for illustrative purposes only, HCS Equity does not provide legal advice or services

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