Reverse Mortgage

A Reverse Mortgage provides options a traditional mortgage may not.

A Reverse Mortgage is specially designed to serve people age 62 years and older. It allows you to tap into the equity of your home. Those funds can be used at your own discretion without a monthly mortgage payment requirement as long as you occupy the property as your primary residence and continue to pay all required taxes, insurance and maintenance costs on the home.

Homestead Funding Corp. believes any decision involving your finances should be made with great care and much education regarding the options and suitability of any financial product. We feel it is critical to understand the process, positives and negatives to be able to ensure a Reverse Mortgage provides cohesiveness with your long term retirement goals and plans.


Our Process

Step 1:
  • » Meet in person with your local Homestead Reverse Mortgage Specialist to assess your needs and individual financial situation.

  • » The benefits, features, options and costs associated with a Reverse Mortgage will be explained.
Step 2:
  • » We will help you determine if a Reverse Mortgage is the right solution for you.

  • » To be certain you understand all aspects of a reverse mortgage, the program requires you to undergo an independent, unbiased counseling session with a U.S. Housing and Urban Development (HUD) approved counselor.
Step 3:
  • » Your Reverse Mortgage Specialist will help you complete the application and collect your documentation

  • » Any existing mortgage or home equity loan balances on your home will be paid off with a portion of the Reverse Mortgage proceeds.
Step 4:
  • » Now your application is set in motion.

  • » Your appraisal and title work will be ordered.

  • » The application will be underwritten for approval once the appraisal & title work is received.
Step 5:
  • » The closing is scheduled at your earliest convenience with our closing agent for the documents to be signed. Don’t forget you have a federally mandated three day waiting period prior to receiving your loan proceeds.

Most Common Questions


  • All persons on title must be 62 years & older.
    Homeowners must occupy the property as their primary residence.
    Fee simple 1-4 living units or approved Condominium units.
    Revocable Living Trusts and Life Estates may be eligible, subject to review and approval.

  • The amount of money you receive depends upon several factors: your age, the value of your home, and the specific plan you choose. We can help you determine which plan best meets your needs. While each individual's situation is different, as a rule of thumb the older you are and the higher your home's appraisal value, the more money you can receive.


  • There are several different payment options available. We can help you determine which one best suits your needs.

    Line of credit - access the equity in your home at your convenience

    Monthly payment - get a monthly payment for a set term or as long as you live in the home

    Lump sum - get cash at time of loan closing to address any current obligations

    Combination of the above - a customized plan to meet your unique needs


  • Costs vary from one program to another. That's why we offer a variety of programs to meet a variety of needs. Most reverse mortgages however, have costs similar to traditional mortgages; such as, interest charges, origination fees, closing costs, inspections and insurance.


  • Yes. A reverse mortgage is a lien just like a traditional mortgage. Repayment is required when that last surviving borrower sells the house, moves or passes away.


  • No. These benefits will not be affected by the proceeds of a reverse mortgage. These rules do vary state to state, so check with the local Area Agency on Aging, and also confer with your tax advisor.


  • Yes. You provide a 40 - 50 percent down payment from the sale of your primary residence, or other sources, and the reverse mortgage can cover the rest.


  • No, experience demonstrates that most houses continue to appreciate over time. A high percentage of houses will have enough equity to pass down as inheritance. Since the home will remain in your name, you have the opportunity to bequeath the property to whomever you choose. Depending on how long the reverse mortgage is active, the amount of withdrawals you request, and the appreciation on your home; the equity in the home is subject to increase or decrease. If there is equity in the property, it will go to you or your beneficiaries, as you wish.


  • Yes. Counseling is required to reinforce your knowledge about how reverse mortgages work and to meet the governments requirements.


  • The equity in your home is considered your money and not additional income. All the funds from a reverse mortgage are tax free.*

    *Please consult a qualified tax professional about you specific taxes ramifications.


  • An appraiser will appraise your home following FHA guidelines. If your house needs to be repaired, depending on the nature of the repair, the lender may allow a repair set-aside to be established and be repaired after closing. If the required repair is a safety issue or concern, then the repair must be completed prior to closing.


  • Yes, property taxes and homeowner's insurance must be paid current at all times along with properly maintaining your home.


  • No, experience demonstrates that most houses continue to appreciate over time. A high percentage of houses will have enough equity to pass down as inheritance. Since the home will remain in your name, you have the opportunity to bequeath the property to whomever you choose. Depending on how long the reverse mortgage is active, the amount of withdrawals you request, and the appreciation on your home; the equity in the home is subject to increase or decrease. If there is equity in the property, it will go to you or your beneficiaries, as you wish.


  • You can use your money however you like. Borrowers have used reverse mortgages for home modifications, healthcare, to supplement retirement income, payoff debt and for a verity of other purposes.


  • All parties on title must be at least 62 in order to receive a reverse mortgage. If you are considering removing someone from title to obtain a reverse mortgage, please seek legal counsel and a tax advisor regarding your particular scenario. Usually this is not advised.

Calculator

A Reverse Mortgage is specially designed to serve people ages 62 years and older. It allows them to tap into the equity of their home to generate “tax-free” cash and use it at their own discretion without any repayment as long as they occupy the property as their primary residence.


Reverse Mortgage Calculator:

The following calculations are for illustration purposes only, as actual figures can vary. Please call to receive a free personalized information package.

About Us

At Homestead Funding Corp. we are committed to securing financial independence and building a bright tomorrow for our senior clients. Working closely with our clients; we analyze current and future needs, wants & desires. We recommend, then implement, smart home equity solutions consistent with their overall retirement plan. Our passionate team of Reverse Mortgage professionals take great pride in being expert resources and trusted advisors to our senior clients, their families and their counselors.

** Homestead Funding Corp. is a proud member of the National Reverse Mortgage Lenders Association (NRMLA), we fully abide by its strict Code of Ethics & Professional Standards.

Testimonials

Ed.....Summit, NY

I had the pleasure of dealing with Tim Keehan, Reverse Mortgage Specialist, from beginning to end on my reverse mortgage. He is a gentleman and a scholar. Tim answered all of my questions (of which there were many) and provided excellent service. He returned all of my emails and phone calls very promptly. He kept me informed with the status of what was happening from the application through the closing... Overall, I’d give Tim an A+ if I were grading his performance in the field. Having supported five separate sales teams during my career, I believe I am uniquely qualified to judge the performance of sales professionals.


John & Maria......Niskayuna, NY

Tim, thank you so much for all your help during the past several weeks. As you know, it’s been a very difficult time for Maria and me this summer. We can’t believe how quickly we were able to close on our reverse mortgage. We truly appreciate everything you did for us; it really made things much easier!


Jim & Kate.......Rochester, NY

We are so very fortunate that reverse mortgages are available for people in circumstances like ours. We really needed to downsize from our long-time, very large family home. We were also hoping not to use 100% of the monies from the sale of our home towards buying a new, more manageable home. The Reverse Mortgage for Purchase made it possible for us to buy our no maintenance, dream townhome. Tim, we’re so happy we got you as our loan rep. We can’t thank you enough for helping us understand how these loans work and guiding us every step of the way. Kate and I could not be happier!


Cathy..... Highland, NY

My mother had gotten a Reverse Mortgage a few years ago on her home in, and was running out of funds from her equity balance. I contacted the company that took care of mom’s loan and they directed me to Homestead Funding, who put me in touch with Bruce Cohen. Right away, Bruce met with me personally, and explained how we would need to use my Power of Attorney, since mom could no longer sign her loan paperwork due to a stroke. He also explained that the new loan would open up additional equity for her to use and let us keep mom’s care in her own home, which is what she wanted all along. Bruce and Homestead Funding took care of everything personally - he kept in touch with me constantly, and we had this completed quickly and professionally. I am a businessperson and I know good service and a caring person when I see one, and both Bruce and his company are top notch. Thanks from me and mom for your excellent work.


Anna & Tom...Salisbury Mills, NY

We have a mortgage where we had to take funds from our savings accounts just to cover our expenses and mortgage payments. I was referred to Bruce Cohen at Homestead Funding by our local bank to look into a Reverse Mortgage. My bank does not provide Reverse Mortgages, but they recommended Bruce from having him help out their customers in the past. We met with Bruce at our home, and he had a comprehensive package of information for us to review. We discussed different types of Reverse Mortgage options, selected the program which met our needs best, completed an application, and we closed our loan in less than 30 days start to finish. I (Anna) am a Realtor in the Hudson Valley, and after we closed our loan, Bruce mentioned that a Reverse Mortgage can be used in various ways as part of financing real estate transactions. I am always looking for ways to help my clients in challenging times, and now have another tool to use when discussing options with my customers. Thanks Bruce!!


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