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Find the Best Reverse Mortgages in Sioux City, IA

Home prices in Sioux City are rising and expected to continue upward, according to Zillow. Older homeowners who want extra cash may benefit from increasing equity by taking out a reverse mortgage. The Sioux City Journal has partnered with ConsumerAffairs to create this guide by comparing product selection and local availability of 56 businesses and choosing five favorites from the top reverse mortgage companies in Sioux City.

Companies pay ConsumerAffairs to be authorized, and the Sioux City Journal and/or ConsumerAffairs may receive compensation when you click a link, call a number or fill out a form on this site.

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Types of reverse mortgages in Sioux City

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If you’re considering a reverse mortgage in Sioux City — whether it’s to pay health care bills, buy hearing aids, fund a bathroom remodel, invest or cover the costs of long-term care — you should shop around at various lenders.

You will notice there are different types of reverse mortgages. The right type of reverse mortgage for you depends partly on how you want to use the money and the value of your home.

The types of reverse mortgages in Sioux City include the following:

  • A Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage. It is a federally insured loan only available from Federal Housing Administration-approved lenders. You can receive the funds from a HECM in multiple ways and use them for any purpose. Counseling is required in order to get a HECM in Sioux City.
  • A proprietary reverse mortgage is a privately backed reverse mortgage. Some lenders offer “jumbo” reverse mortgages, which are proprietary reverse mortgages for owners of higher-valued homes who wish to borrow more than the HECM FHA mortgage limit of $765,600 at the time of publishing.
  • A single-purpose reverse mortgage is the least expensive type of reverse mortgage, but you can only use the funds for a lender-specified purpose. For example, you might only be able to use the money to make home repairs. Single-purpose reverse mortgages are offered by local and state government agencies and nonprofit organizations. They aren’t available everywhere. Low- and moderate-income homeowners are able to qualify.

Sioux City reverse mortgage requirements

To apply for a reverse mortgage in Sioux City, you must:

  • Be at least 62
  • Own your home completely or have paid off a significant amount
  • Live in the property as your primary residence
  • Be financially able to pay property taxes and insurance premiums and maintain the home
  • Have no delinquent federal debt

The requirements for a reverse mortgage can vary slightly based on the type of reverse mortgage. HECM applicants, for example, must also meet with a Department of Housing and Urban Development-approved counselor for an information session. HECM applicants must also live in properties that meet certain standards.

When you apply for a reverse mortgage, expect a lender to want to see proof of income and assets, timely payment of taxes and insurance premiums, and a list of your monthly expenses. The lender will also check your credit history. The lender may require funds to be set aside to pay property taxes, homeowners insurance and flood insurance.

How do I receive payment for a reverse mortgage in Sioux City?

Reverse mortgage borrowers in Sioux City have different ways to receive loan funds. The availability of different options depends on the type of reverse mortgage you get and the lender.

  • Single disbursement: You receive a lump-sum payment. A fixed-rate HECM provides a single disbursement.
  • Monthly payments: You receive a fixed monthly payment for a specific number of months (“term” option) or for as long as you live in the home (“tenure” option). You can select this option on an adjustable-rate HECM.
  • Line of credit: A line of credit allows you to access money as needed in amounts you want, up to a limit. You can choose this option on an adjustable-rate HECM.
  • Combination: This “modified” option combines a line of credit with monthly payments.

Sioux City reverse mortgage FAQ

Who qualifies for a reverse mortgage in Sioux City?

To qualify for a reverse mortgage in Sioux City, you should be at least 62, own your home or have paid off a large amount of your mortgage, live in the home as your principal residence, not have any overdue federal debt and be able to continue to pay property taxes and insurance.

How much money do you get from a reverse mortgage in Sioux City?

How much money you can borrow with a reverse mortgage in Sioux City depends on your age, the type of reverse mortgage (HECM, proprietary or single-purpose), your home’s appraised value, interest rates and your personal financial situation. As a rule, the older you are and the more equity you have in the home, the more you can borrow.

How do you pay back a reverse mortgage in Sioux City?

A reverse mortgage usually doesn’t have to be repaid until the last surviving borrower moves out of the home or dies. The borrower or the borrower’s estate then repays the loan — sometimes by selling the house.

Sioux City reverse mortgage lender information

Finance of America Reverse

Finance of America Reverse offers HECMs and “reverse for purchase” loans for those who want to move. FAR has been in the reverse mortgage industry for over 17 years. Contact the company online or by phone for more information.

Finance of America Reverse

Liberty Reverse Mortgage

Liberty Reverse Mortgage is a reverse mortgage lender that has funded a total of over $7.5 billion in loans for over 60,000 borrowers across the U.S. Its products include HECMs, HECMs for Purchase and EquityIQ jumbo reverse mortgages. The “Iron Clad Guarantee” promises to match or beat a competitor’s program offering or give you a $100 Visa gift card, and to close your loan in 60 days or fewer, or it credits $500 toward closing costs. Complete your reverse mortgage application entirely online.

Liberty Reverse Mortgage

American Advisors Group

American Advisors Group offers HECMs, jumbo reverse mortgages with borrowing amounts up to $4 million and “reverse for purchase” loans. A reverse mortgage calculator on its website quickly shows you how much you may qualify to borrow. Contact AAG online or by phone and receive a free information kit.

American Advisors Group

Mutual of Omaha Mortgage

Mutual of Omaha Mortgage offers reverse mortgages, including HECMs for Purchase. Its website has a number of reverse mortgage and retirement calculators to help customers figure out their retirement plans. It also has answers to FAQ. Call or fill out a form online for more information from Mutual of Omaha Mortgage.

Mutual of Omaha Mortgage

Intercontinental Capital Group

Intercontinental Capital Group is a direct lender specializing in home financing. Customers work with counselors to determine their eligibility for a reverse mortgage in Sioux City. Start the reverse mortgage application process with Intercontinental Capital Group by filling out a form online or calling.

Intercontinental Capital Group