Premier Reverse Mortgage Loans Review

Overview

Based out of Marietta, Georgia, Premier Reverse Mortgage is a one-product company that specializes in reverse mortgages. The company offers traditional FHA HECMs and purchase reverse mortgages, also known as HECMs for purchase. Additionally, it provides proprietary reverse mortgages designed for younger individuals and higher-value homes above the FHA limit.     

Premier Reverse Mortgage allows you to choose how you want to receive your funds. You can opt for a lump sum, line of credit, or fixed monthly payments. Best of all, you can mix and match the disbursement methods to find an income stream that fits your situation. 

Suitable For?

If you own or have equity in your home but are struggling to pay medical bills or other debt, then Premier Reverse Mortgage’s product offerings may be right for you. With a reverse mortgage from Premier Reverse Mortgage, seniors aged 62 and older (or 55 and above in some states) can tap into their home equity without having to take on large monthly payments. 

Types of Loans/Products

Premier Reverse Mortgages carries three types of reverse mortgage products, FHA HECMs, HECMs for Purchase, and Proprietary Reverse Mortgages.

FHA HECMs

The Federal Housing Authority (FHA) controls the regulations that govern traditional HECMs. Accordingly, the qualifications and features of FHA HECM products don’t change significantly from one company to the next. Here are some of the main features of FHA HECMs:

• Age requirement: At least one of the borrowers must be 62 years of age or older at the time of closing.
• Interest rate and APR: Primarily adjustable rate, although fixed rate loans are also available. Rates vary depending on the loan type, loan amount, LTV, and other factors. 
• Loan-to-value (LTV) ratio and lending limit: The LTV varies depending on the age of the borrower, your home’s appraised value, and the expected interest rate. The maximum home value is capped at $1 million.  
• Distribution options: Available options include lump sum, line of credit, monthly payments, or a combination of all three. Monthly payments can be made for a set term or the life of the loan. 
• Mortgage insurance premium (MIP): When you close on your loan, you must pay an upfront MIP equal to 2% of your home’s value or lending limit, whichever is lower. Additionally, you’ll pay an annual MIP charge of 0.5% per year, compounded monthly.

HECMs for Purchase

HECMs for purchase are the same as regular FHA HECMs, except that they are used to borrow a portion of the purchase price for a new primary residence. Like a regular mortgage, HECMs for purchase have a downpayment requirement that typically ranges 50%-60% of your home’s purchase price.

Proprietary Reverse Mortgages

Also known as private or jumbo reverse mortgages, proprietary reverse mortgages are backed by your mortgage lender rather than the federal government. Proprietary reverse mortgages function similarly to traditional HECMs with a few key differences as outlined here:

• Age requirement: One of the borrowers must be at least 55, 60, or 62 at time of closing (varies depending on the state). 
• Interest rate and APR: Fixed-rate loans are issued via a lump sum, while adjustable-rate loans are issued as a line of credit. Adjustable rates are capped at 5% above the starting rate at the time of closing. 
• LTV and lending limit: No home value cap. Instead, the maximum loan amount is capped at $4 million. 
• Closing costs: No upfront or ongoing mortgage insurance premium charge.

The Application Process

Follow these steps to get started with Premier Reverse Mortgage: 

1. Prequalification: During prequalification, your income, credit, and property charge payment history will be reviewed to see if you qualify and how much loan you can afford. 
2. HUD-approved counseling: You must complete a HUD-approved counseling session to qualify for any type of reverse mortgage. Numerous local and national agencies provide counseling services in person and over the phone.  
3. Loan application: On your application, you’ll need to provide your personal and financial details, including date of birth, social security number, income, and mortgage information.   
4. Processing: Upon receiving your application, Premier Reverse Mortgage will order services like the appraisal, flood certification, and title work. 
5. Underwriting: An underwriter will review your loan application to see if you meet all the requirements to qualify for a loan. 
6. Closing: You’ll have to pay any closing costs once your loan is approved, such as the upfront 2% mortgage insurance premium charge for FHA HECMs. You’ll also need to provide Premier Reverse Mortgage with your banking details and decide how you’d like to receive your funds.  

Repayment Terms

Your interest rate and APR will vary depending on your loan type, loan amount, LTV, and other factors. Fixed-rate reverse mortgages have a fixed interest rate over the life of the loan. Meanwhile, adjustable-rate reverse mortgages include both a fixed rate (known as the initial interest rate) and a variable interest rate. You don’t pay interest, premium, or closing fees until you move out of your home, sell your home, or pass away, except for a 2% upfront MIP charge on FHA HECMs. 

Help & Support

You can reach Premier Reverse Mortgage’s customer service team via phone, chat, or email. Its customer service team is available 8am-5pm ET, Monday-Friday. You can also check out the learning resources on Premier Reverse Mortgage’s website, including FAQs, qualifications, and blog articles. 

Email: info@premierreverse.com

Phone: (800) 996-5361

How Premier Reverse Mortgage Compares

Summary

Premier Reverse Mortgage offers FHA HECMs along with proprietary and purchase reverse mortgages. It provides you with multiple ways to receive your funds and can finance proprietary loans up to $4 million.

While the company doesn’t do anything unique, it distinguishes itself from its competitors thanks to its excellent customer service. This focus on the customer experience is demonstrated by the many positive reviews left by customers on third-party websites. Premier Reverse Mortgage makes it easy for you to unlock the equity in your home by guiding you through the reverse mortgage process from start to finish. 

FAQs

What are the qualifications for a reverse mortgage?

There are 3 main criteria to qualify for a reverse mortgage - age, LTV, and income and credit history. 

What states does Premier Reverse Mortgage do business in?

Premier Reverse Mortgage accepts applications in Arizona, Arkansas, California, Colorado, Florida, Georgia, Michigan, New Jersey, New York, Oregon, Pennsylvania, South Carolina, Texas, Virginia, and Washington. 

What are the options for taking your mortgage proceeds?

Fixed-rate reverse mortgages must be taken in a lump sum. If you choose an adjustable-rate reverse mortgage, you can receive your funds as a lump sum, a line of credit, in monthly payments, or through a combination of all three methods. 

How much is due when I repay my loan?

The amount due is equal to the funds you received plus any interest, mortgage insurance, and closing costs. 

Physical Address 

1640 Powers Ferry Rd SE, Bldg. 28, Ste. 300, Marietta, GA 30067

Methodology

The information relayed in this review comes from Premier Reverse Mortgage’s website and customer reviews.