Home Keeper Reverse Mortgage

The Home Keeper Mortgage is Fannie Mae’s proprietary reverse mortgage product that is similar in many ways to a HECM reverse mortgage, although both offer slightly different features. A Fannie Mae reverse mortgage is open to seniors who are 62 years of age of older, own their home out right or owing very little debt against it, and the property is their principal residence.

How does a Home Keeper Reverse mortgage compare to a HECM reverse mortgage?

A HECM is insured by the government through the FHA insurance. A Homekeeper reverse mortgage is insured by Fannie Mae. Both programs guarantee that the lender will receive the agreed payments no matter what.
Fannie Mae's benefits are reduced for couples
Fannie Mae can have higher monthly payments for a single homeowner
Interest rate is higher than FHA HECM
HECM's line of credit grows while Fannie Mae's line of credit does not
No term payment with Fannie Mae
Fannie Mae has a higher lending limit, so it could be a better option for those with more valuable homes
Fannie Mae is the only lender offering a reverse mortgage for home purchase allowing a borrower to purchase a retirement home with no monthly payments.

Generally, there are 3 options with receiving payments; monthly payments to supplement existing income, as a line of credit that you can draw upon as needed until the line of credit is exhausted, or through a combination of regular monthly payments and a line of credit. The payment options can be changed at any time, for example, you first elect monthly payments but some time later want a line of credit and then change back to monthly payments. However, there a small charge will be payable to the lender for this.

A Home Keeper reverse mortgage is only payable when the borrower(s) sells the house, the house is no longer the primary residence or the borrower(s) die. The title deeds of the home stay in the hands of the homeowner and never with the lender. Even when the loan is due payable, the deeds stay with the home owner or their heirs. The amount owed must be paid in one lump sum and can be paid in any manner, such as selling the house, selling of shares to raise the necessary cash, remortgage the home with a normal mortgage etc.

Over the coarse of the loan, the lender can choose to pay back some or all of the reverse mortgage equity loan. Doing this would of course reduce the final amount due to be paid to the lender.

A Home Keeper reverse mortgage will not affect your Social Security or Medicare eligibility or benefits because these programs are not based on need. Your Social Security benefits are earned by your period of covered employment, and Medicare is available to anyone age 65 or older, or to anyone under age 65 who receives Social Security disability benefits.

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Home Keeper Reverse Mortgage