Reverse Mortgage Funding Review 2019
Reverse Mortgage Funding offers a variety of reverse mortgage options, including the chance to use your home equity earlier than some other lenders. Thanks to stellar reviews and a quick application, many borrowers choose RMF for reverse mortgages.
Equity Elite Reverse Mortgage
Equity Elite Reverse Mortgage
What we like:
Access a home’s equity value earlier than other lenders allow
|Maximum Loan Amount||$4 million|
|Loan Forms||Lump-sum, monthly advance, line of credit, or a combination of these options|
|Other Loan Types||Annual adjustable-rate HECM, monthly adjustable-rate HECM, fixed-rate HECM, HECM for purchase|
- Reverse Mortgage Funding offers more reverse mortgage options than competitors.
- RMF ranks highly among review and quality agencies, including Trustpilot and the Better Business Bureau.
- Thanks to its flexible approach to reverse mortgages, RMF enables borrowers to receive money in the way that is most helpful to them.
When an unexpected expense throws a wrench in your financial future, your choices for handling the payments can be overwhelming. For older Americans, a reverse mortgage loan could help.
Reverse Mortgage Funding, LLC operates in all U.S. states except Hawaii, is known for its responsiveness, and specializes in reverse mortgages to fund the cost of living in retirement.
This Reverse Mortgage Funding review will explain what the company offers, how to apply for financing, and the pros and cons of getting a reverse mortgage with RMF.
In this review:
- Reverse Mortgage Funding: by the numbers
- Which types of loans does Reverse Mortgage Funding offer?
- Pros & cons of an RMF reverse mortgage
- Eligibility & application requirements
- Reverse Mortgage Funding alternatives
Reverse Mortgage Funding: by the numbers
|Minimum Age||Maximum Loan Amount|
|Equity Elite Reverse Mortgage||reversemortgagefunding-mortg-953-agelow||reversemortgagefunding-mortg-953-amounthigh|
|HECM Annual Adjustable-Rate||reversemortgagefunding-mortg-954-agelow||Not Disclosed|
|HECM Monthly Adjustable-Rate||reversemortgagefunding-mortg-955-agelow||Not Disclosed|
|HECM Fixed-Rate||reversemortgagefunding-mortg-956-agelow||Not Disclosed|
|Reverse Mortgage for Purchase||Not Disclosed||Not Disclosed|
Which types of loans does Reverse Mortgage Funding offer?
RMF reverse mortgages come in many shapes and sizes to suit the needs of a wide customer base.
The company offers several home equity conversion mortgages (HECM)—a popular type of FHA-insured reverse mortgage for people over 62.
An HECM comes with borrower protections set by the U.S. Department of Housing and Urban Development (HUD), including interest rate caps and origination fee caps. But you’ll be responsible for paying an FHA mortgage insurance premium.
Overall, Reverse Mortgage Funding offers these loans:
- Equity Elite Reverse Mortgage
- HECM Annual Adjustable-Rate
- HECM Monthly Adjustable-Rate
- HECM Fixed-Rate
- Reverse Mortgage for Purchase
Equity Elite Reverse Mortgage
Typically, reverse mortgages are only available for consumers 62 or older. With RMF’s Equity Elite Reverse Mortgage, 60 is the new 62.
This product lets you qualify for a reverse mortgage earlier, and the forgiving application process helps you access more of your home’s equity. No private mortgage insurance means the Equity Elite reverse mortgage may also have lower upfront and monthly costs than other options.
HECM Annual Adjustable-Rate
With rates that adjust only once per year, this reverse mortgage loan option helps you have a consistent financial picture. Borrowers can take the funds as a lump sum, monthly advance, line of credit, or combination of these.
A HUD-set interval cap guarantees the interest rate cannot increase by more than two percentage points yearly, and a lifetime cap prevents interest-rate growth of more than five percentage points from the initial rate.
HECM Monthly Adjustable-Rate
The Monthly Adjustable-Rate reverse mortgage sees its rate change monthly instead of annually.
It is subject to the same rate cap that protects consumers from endlessly ballooning rates, and the withdrawal options are the same as the annual version: lump sum, line of credit, monthly advances, or a combination. Interest only accrues on the money you actually borrow.
One of the most obvious benefits of a fixed-rate loan is that the interest rate is set at the time of closing and never changes for the life of the loan. This gives you predictability.
However, the HECM Fixed-Rate loan is less flexible than the adjustable-rate options. You must take your entire balance as a lump sum at closing. If you are using the loan to pay off a more expensive mortgage or cover an above-average expense, this may be a good choice.
Reverse Mortgage for Purchase
With a Reverse Mortgage for Purchase, you can purchase a home by combining your funds (down payment) and an HECM. You won’t make monthly mortgage payments, and you own the home as long as you live in it. The loan does not have to be repaid until you move out or sell the home.
Pros & cons of an RMF reverse mortgage
- Security in interest rates on HECMs thanks to rate caps.
- Good standing in reverse mortgage reviews.
- Wide variety of reverse mortgage options to choose from.
- Reverse mortgages can leave your heirs responsible for repayment after you die.
- You must own a substantial amount of home equity.
- Not all reverse mortgage types allow for multiple disbursement and payment options.
Eligibility & application requirements
Two variables are used to determine your eligibility for a reverse mortgage:
- Your age: 62 or older for most loans; 60 or older for Equity Elite.
- Home equity: This includes your home’s current value and outstanding mortgage balance.
How to apply for a Reverse Mortgage Funding loan
Applying for a loan from Reverse Mortgage Funding is simple, thanks to its quick response time and online application process. RMF is available via phone at 888-277-1567 or online.
Reverse Mortgage Funding is known for being quick, so expect to hear back in only a few days after submitting your application. A loan officer will then be in touch to request any supplementary information and finalize your application.
Info you’ll need to apply
You may have to submit this information with your application:
- Name, address, contact information, and age.
- Social Security number.
- Government-issued identification.
- Recent tax returns or pay stubs.
- Important information about the property, such as year purchased, square footage, estimated value, any major repairs, and approximate property taxes.
- Loan information for mortgages, home equity loans, or home equity lines of credit.
- Outstanding debt balances (to determine your debt-to-income ratio).
- The holders of any current debt and their contact information.
Reverse Mortgage Funding alternatives
It’s important to compare rates from several lenders to find the best option. Check out our list of the best reverse mortgage lenders, and get prequalified quotes from several before you make your decision.
While RMF’s lower age requirement can be an advantage, some companies offer more competitive rates to those who wait until age 70 or later to take out a reverse mortgage.
How we rated Reverse Mortgage Funding
Reverse Mortgage Funding scored a 5.00 / 5.00. LendEDU ranks reverse mortgage lenders based on the weighted average of 10 data points, including:
- BBB Rating (5%)
- Trustpilot Rating (5%)
- States Available (5%)
- Fund Time (30%)
- Loan Amounts (30%)
- Number of Branches (5%)
- Number of State Licenses (5%)
- Number of Regulatory Actions (5%)
- Number of Mortgage Loan Originators (5%)
- Year Founded (5%)