Reverse Mortgage Funding Review
Reverse Mortgage Funding’s licensed loan specialists are located across the country to provide service to customers and explain all aspects of the loan products. Company headquarters are in New Jersey, but it has corporate offices in New York and California.
Reverse Mortgage Funding offers adjustable- and fixed-rate reverse mortgage loans and a reverse mortgage for purchase. RMF’s Equity Elite loan does away with many of the constraints of a traditional reverse mortgage at a lower cost.
Reverse Mortgage Funding’s Customer for Life Commitment entails personalized service. Loan officers communicate through every step of the process. This reverse mortgage lender services loans after closing and maintains a long-term relationship with customers.
- Several reverse mortgage options
- Excellent customer service
- Equity Elite provides enhanced options
- Price Match Program
- Equity Elite not available in all states
- Submitting an online quote form provides consent to sales calls
Reverse Mortgage Funding Equity Elite
Equity Elite is a private reverse mortgage exclusively available from Reverse Mortgage Funding. A standard home equity conversion mortgage (HECM) requires you to be a minimum of 62 years old. Equity Elite’s age restriction is 60 in most states. Those who own houses, condos or townhouses or plan to build a new home can apply. Townhomes and condos do not have to be FHA-approved.
Borrowers pay no mortgage insurance premiums with Equity Elite, and lender credits can reduce or eliminate closing costs. Unlike most reverse mortgages, there’s no limit on the amount of proceeds the borrower can access the first year. Equity Elite borrowers must see a reverse mortgage counselor, which is also a requirement for RMF’s standard reverse mortgages.
Equity Elite reverse mortgages have a line of credit option and are currently available in 23 states. If you live in Texas, Utah or North Carolina, you must be at least 62 years old to apply. You can borrow up to $1.5 million in Massachusetts and up to $4 million in other states.
|RMF Equity Elite vs. Home Equity Conversion Mortgages (HECMs)|
|Minimum qualifying age||62||60 in most states, otherwise 62|
|Limit on first year’s payout||Yes||No|
|Maximum loan||$822,375||$4 Million|
|Mortgage insurance premiums||Paid upfront and ongoing||None|
|Condominium eligibility||FHA-approved only||Various approval options, so more condos qualify|
|Closing costs||Set by lender||Lender credits offset or eliminate closing costs|
Reverse Mortgage Funding HECM Loans
Reverse Mortgage Funding offers four FHA-backed home equity conversion mortgages. These reverse mortgages have stricter requirements than the Equity Elite. However, the HECM loans are available in all states and Equity Elite is only available in parts of the country. Reverse Mortgage Funding’s HECM loan options include adjustable rates, fixed rates and a reverse mortgage for purchase.
- A HECM Annual Adjustable Rate is a reverse mortgage with an interest rate that adjusts yearly. A lifetime cap keeps the total interest rate below a set maximum percentage. Reverse Mortgage Funding’s HECM Annual Adjustable Rate features an interval cap to guarantee the annual rate never increases over a certain percentage. Receive a lump sum payout, a line of credit, monthly advances or a combination of these options.
- A HECM Monthly Adjustable Rate comes with an interest rate that fluctuates monthly. This reverse mortgage includes a cap to guarantee the monthly rate never exceeds a certain percentage over the initial rate. Payout options are a one-time payment, monthly advances, a line of credit or a combination of these options.
- A HECM Fixed Rate loan from Reverse Mortgage Funding is attached to one interest rate throughout the loan. You have the reliability of a steady rate with an RMF HECM Fixed Rate loan, but your only payout option is to take a lump sum.
- A Reverse Mortgage for Purchase provides a reverse mortgage secured by a home you purchase instead of your current home. This loan requires a down payment from the borrower but can get retirees into a house that better fits their lifestyles.
Reverse Mortgage Funding Loan Costs
Closing costs and other fees vary depending on the reverse mortgage options you choose and state and federal requirements. A reverse mortgage for purchase typically requires a substantial down payment. Closing costs for a HECM are often higher than those for a standard mortgage but will likely be lower with an Equity Elite loan.
Reverse Mortgage Funding’s Price Match Program pays a $1,000 gift card if your loan officer can’t match or beat a HUD-approved competitor’s pricing. We’re assuming the price match doesn’t apply to the Equity Elite loan since it’s unique to RMF and not subject to FHA regulations.
How to Get Started with a Reverse Mortgage Funding Loan
You can see if you qualify for a Reverse Mortgage Funding loan package using the free loan calculator on its website. You’ll also find a number to call on the site for information.
Reverse Mortgage Funding has local, licensed loan specialists available to meet with you in most parts of the U.S. Discuss your needs and plans with the specialist, who then explains your loan options and answers questions. Apply for a loan, and RMF determines which reverse mortgage is best for your circumstances.
Reverse Mortgage Funding Complaints
The Better Business Bureau gives Reverse Mortgage Funding an A+, and the few complaints filed have been resolved. Consumers on the BBB site are either very positive or negative, with a composite score of 3.53 out of 5 stars. Many reviews mention polite, professional and helpful agents. Poor reviews frequently reflected frustration with the paperwork and time required, but FHA regulations create the requirements.
Reverse Mortgage Funding scores 4.6 out of 5 stars from ConsumersAdvocate and 4.8 out of 5 from Trustpilot. Facebook reviews yield 5 out of 5 stars.
Reverse Mortgage Funding Q&A
In what states does Reverse Mortgage Funding offer loans?
Reverse Mortgage Funding lends in all 50 states and the District of Columbia. The company also services U.S. territories, including American Samoa, Guam, Puerto Rico and the Virgin Islands. Not all loan products are available in each state.
Why did another company acquire Reverse Mortgage Funding?
Global private investment firm Starwood Capital Group acquired Reverse Mortgage Funding’s parent company in January 2021. Starwood Capital is financially sound with assets under management greater than $60 billion. Starwood can increase Reverse Mortgage Funding’s growth through proprietary reverse mortgage products.
How does an RMF Equity Elite loan get around FHA reverse mortgage regulations?
Equity Elite is a private reverse mortgage offered only by RMF. The loan has no affiliation with the FHA’s HECM loan program. Equity Elite’s terms are more flexible with fewer regulations.
Can I receive a monthly payment and have a line of credit with a Reverse Mortgage Funding loan?
Depending on the reverse mortgage product you choose, RMF allows you to define how you receive funds. You can have a monthly distribution and keep a line of credit for emergencies. You may also take a lump sum or monthly advances with no line of credit.
Could a Reverse Mortgage Funding loan balance exceed my home’s value?
It’s unlikely your home would ever fall below your reverse mortgage balance. You are not responsible for the lapse in value should this occur. Reverse Mortgage Funding only requires you to satisfy the loan obligations covered at closing, like keeping the property in good repair and paying property taxes and homeowners insurance.
Reverse Mortgage Funding offers consumers an excellent selection of loans to enhance retirement, pay off debt or get retirees into new houses that meet their needs for years to come. The company’s Price Match Program assures borrowers are getting the best possible rate, and experienced loan officers find the best reverse mortgage for each customer. Reverse Mortgage Funding works only in the reverse mortgage market to provide a high level of expertise to consumers.