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I have been doing reverse mortgages in New Hampshire for several years and have built a solid reputation on providing excellent service and followup.  I have helped clients with addressing financial issues from the lakes region to the seacoast of New Hampshire and every clients situation is different.  I have a unique process where, I will meet with the client on the first meeting.  My goal is to understand the client, their needs and who in the family and friends needs to be a part of the reverse mortgage process.  Once we determine that the reverse mortgage is a good fit and all parties are comfortable, then we will have the borrower obtain a counseling certificate.  I set up the meeting with the counselor and this will be conducted over the telephone. Once we have the certificate, we will get together again and fill out the loan application.  When I turn in the loan application, I will than order an appraisal and title work to be conducted.  Once the title work is submitted and the appraisal, the file will then be underwritten.  Once approved we schedule a closing that is at a location convenient to the borrower.  I will be at the closing so that the borrower is assured everything we discussed through the process is addressed.  If there are any issues with the mortgage, I will make sure that we have them corrected and resolved.  I believe in treating every client the way I would like to be treated.

Please call me if you would like to learn more about reverse mortgages.

David Keslar

603-817-7173

About the HECM Program:

The HECM FHA insured reverse mortgage can be used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender, bank, credit union or savings and loan association. To assist the homeowner in making an informed decision of whether this program meets their needs, they are required to receive consumer education and counseling by a HUD-approved HECM counselor.

HECM counselors will discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, the homeowner should be able to make an independent, informed decision of whether this product will meet their needs. You can also use this handy Reverse Mortgage Calculator to help you see if you qualify.

Homeowners who meet the eligibility criteria can complete a reverse mortgage application by contacting a FHA-approved lending institution such as a bank, mortgage company, or savings and loan association. If you need assistance locating a FHA-approved lender, you can request a listing of FHA-approved lenders from the HECM counselor or use HUD's searchable listing.

Borrower Requirements:

	Age 62 years of age or older
	Own your property
	Occupy your property as primary residence
	Participation in a consumer information session given by an approved HECM counselor

Mortgage Amount Based On:

	Age of the youngest borrower
	Current interest rate
	Lesser of appraised value or the FHA insurance limit

Financial Requirements:

	No income or credit qualifications are required of the borrower
	No repayment as long as the property is the primary residence
	Closing costs may be financed in the mortgage

Property Requirements:

	Single family home or 1-4 unit home with one unit occupied by the borrower
	HUD-approved condominiums
	Manufactured homes and leased land
	Meet FHA property standards and flood requirements

How the Home Equity Conversion Mortgage Program Works:

• Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
• Term - equal monthly payments for a fixed period of months selected.
• Line of Credit - unscheduled payments or in installments, at times and in amount of borrower's choosing until the line of credit is exhausted.
• Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
• Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.

Homeowners whose circumstances change can restructure their payment options for a nominal fee of $20.

Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as the home is the borrower's principal residence. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner or to his or her survivors. You can never owe more than your home's value.

If the sales proceeds are insufficient to pay the amount owed, HUD will pay the lender the amount of the shortfall. HUD's Federal Housing Administration (FHA) collects an insurance premium from all borrowers to provide this coverage.

The amount a homeowner can borrow depends on their age, the current interest rate, other loan fees and the appraised value of their home or FHA 's mortgage limits for their area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

For example, based on a loan with an interest rates of approximately 9 percent, and a home qualifying for $100,000, a 65-year-old could borrow up to 22 percent of the home's value; a 75-year-old could borrow up to 41 percent of the home's value; and, an 85-year-old could borrow up to 58 percent of the home's value. The percentages do not include closing costs because these charges can vary.

There are no asset or income limitations on borrowers receiving HUD's reverse mortgages.

There are also no limits on the value of homes qualifying for a HUD reverse mortgage. The value of the home will be determined by an appraisal. However, the amount that may be borrowed is derived from the lower of the appraisal amount or FHA mortgage limit for the area, which varies from $200,160 to $362,790. For Alaska, Guam, Hawaii and the Virgin Islands, the FHA mortgage limits may be adjusted up to 150 percent of the ceiling depending on the area. The FHA limits usually increase each year. As a result, owners of higher-priced homes can't borrow any more than owners of homes valued at the FHA limit.

HUD's reverse mortgage program collects funds from insurance premiums charged to the homeowners. Homeowners are charged an upfront insurance premium which is 2 percent of the maximum claim amount that may be borrowed plus a .5 percent annual premium.