Reverse Mortgage

What is a reverse mortgage?

Also, known as a home equity conversion mortgage, or HECM, a reverse mortgage is a type of home equity loan for homeowners 62.5 or older. It does NOT require monthly mortgage payments. The loan is repaid after the borrower moves out or dies.

Q: Why would a reverse mortgage benefit me?

A: If you are in retirement and looking to supplement income, pay for health care expenses, pay off debt or reduce monthly obligations.

Q: How does it work?

A: The bank makes payments to the borrower throughout his or her lifetime or in one lump sum.

Q: When does it need to be repaid?

A: When the borrower dies, sells the home or permanently moves out.

Q: Who is eligible?

A: Seniors age 62.5 and older who own home outright with a minimum of 38% equity.

Q: How can I used the proceeds of an HECM?

A: For any reason. Retirees typically use a reverse mortgage proceeds (cash) to supplement income, pay for health care expenses, pay off debt or finance home improvement jobs.

**NEW REVERSE MORTGAGES ARE NOW OFFERED WITH LITTLE TO NO COSTS, WITH MORE PROTECTION TO THE BORROWER AND LENIENCY TO THEIR HEIRS. IN FACT, MORE FINANCIAL ADVISORS ARE SUGGESTING REVERSE MORTGAGES AS A RETIREMENT SUPPLEMENT NOW THAN EVER BEFORE!**

With a reverse mortgage, there’s no need to relocate,

sell your home or fret over financial shortfalls.

Sigma Mortgage Corporation brokers expert, ethical reverse mortgages throughout Jefferson County, Douglas County, Arapahoe County and Adams County. For more than 20 years, Sigma Mortgage has been a leading mortgage originator, serving Coloradan homeowners.

Exactly, what is a reverse mortgage?

A reverse mortgage is a mortgage product, backed by the U.S, Department of Housing and Urban Development.  These types of mortgages enable aging adults, who have a lack of income; but equity in their residence to convert a portion of their home’s value into cash.

With a reverse mortgage, there’s NO:

  • Giving up the property title
  • Selling the home
  • Taking on a new home loan payment
  • Need to relocate or downsize
  • Hidden fees or costs

10-Common Reasons Homeowners Opt for a Reverse Mortgage in Colorado

  • Pay off an existing mortgage
  • Relieve financial stress
  • Grow a financial cushion for future expenses
  • Consolidate and resolve debts
  • End monthly mortgage installments
  • Fund gifts to heirs
  • Purchase another residential property
  • Cover current/future medical expenses (i.e. at-home care, long term care)
  • Maintain life quality by increasing cash-flow
  • Secure a lump sum of cash

Did you know?

95 Percent of Reverse Mortgages are essentially Home Equity Conversion Mortgages (HECMS)

Basic Reverse Mortgage Requirements:

Reverse mortgages stipulate these requirements for homeowners:

  • Must be 62 years old and over
  • Have at least 38 percent equity in the property
  • Have to occupy the home as a primary residence
  • Must subscribe to a 60-90 minute counseling seminar to understand all the aspects of reverse mortgages
  • Carry a current hazard insurance policy
  • Maintain proper home care and upkeep
  • Continue to make tax payments

Secure a confidential, FREE, no-obligation quote at 303-799-4184

Top Misconceptions on Reverse Mortgages

Misconception: Reverse mortgages entail many loopholes for lenders to acquire a home owner’s property.

False. Reverse mortgages serve as a means for retired, homeowners to remain in their property without relocation.

Misconception: If I own money on my mortgage, I cannot qualify for a reverse mortgages.

False. As long as your meet the age and equity requirements, you should be able to qualify for a reverse mortgage.

Misconception: If a homeowner secures a reverse mortgage, it will prevent heirs from inheriting the property.

On the contrary, the new improved reverse mortgage enables heirs up to a year to purchase or pay off the home loan.

Misconception: Taxes and home owners insurance are unnecessary with a reverse mortgage.

False. The homeowner is required to maintain the property; as well as taxes and a hazard home insurance policy.

Misconception: With a reverse mortgage, the government owns the home.

False. Ownership only reverts to the government when taxes go unpaid or the reverse mortgage holder no longer resides in the home.

Misconception: A reverse mortgage is unsuitable for homeowners with outstanding debt.

False. Many homeowners opt for a reverse mortgage to pay off debt and maintain current life quality.

Misconception: In order to qualify for a reverse mortgage, my home must be paid off.

False. Most homeowners use a HECM to pay off an existing home loan, eliminating the monthly mortgage.

Misconception: Only senior citizens, living on a fixed income are eligible for a reverse mortgage.

False. Regardless of financial status, individuals over the age of 62 are eligible for a reverse mortgage. Many affluent Coloradan homeowners utilize reverse mortgages as a form of income).

Misconception: If a homeowner has debt, he or she is ineligible for a reverse mortgage.

False. Most homeowners use a reverse mortgage to pay off debt, consolidate outstanding fees.

Misconception: In order to secure a reverse mortgage, borrowers have to pay all closing costs out of pocket.

False. There are no out of pocket closing costs with a reverse mortgage.

Misconception: A home equity conversion mortgage (HECM) should never be used for retirement planning.

On the contrary, many homeowners over the age of 62 opt for a reverse mortgage as part of their retirement plan.

Discover whether a reverse
mortgage is suitable for you,
E-mail Sean or a complimentary quote.

20-Top Cities Sigma Mortgage Corporation Serves in Colorado

  • Arvada
  • Aurora
  • Broomfield
  • Castle Rock
  • Castle Pines
  • Centennial
  • Colorado Springs
  • Columbine Valley
  • Glendale
  • Golden
  • Greenwood Village
  • Denver
  • Highlands Ranch
  • Ken Caryl
  • Lakewood
  • Littleton
  • Lone Tree
  • Longmont
  • Parker
  • Wheat Ridge

Even if your city is not located above, give us a call at to learn how a reverse mortgage will benefit you. (**All quotes are totally-free and no obligation and completely confidential)

What do I need to secure a hassle-free reverse mortgage quote?

  • Current mortgage statement
  • And agree to credit check

E-mail Us for a good time to schedule a phone consultation.