Rather than moving elsewhere, more retirees are remaining in the Cleveland area where housing costs are among the lowest in the country. Still, many retirees find themselves in need of financial support beyond a fixed income. With a reverse mortgage, senior homeowners can turn their home equity into extra cash. Our partners at ConsumerAffairs reviewed the best reverse mortgage lenders in Cleveland to help you get financial flexibility.
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How to qualify for a reverse mortgage lender in Cleveland
Many Clevelanders seek reverse mortgages because they have fixed incomes and want to enhance the quality of their retirement years. As with most of the U.S., the Cleveland area is seeing steady increases in the number of seniors in the community as baby boomers age.
Developers are offering seniors more housing options including luxury apartments, assisted and independent living complexes, and townhouse and villa-style housing. Some of the most active areas for such development include Medina, East Cleveland, Lakewood and Bedford. These areas offer affordable land, proximity to major medical institutions and some tax abatement programs.
Among reverse mortgage products, over 90 percent of them are managed by the Department of Housing and Urban Development. These are insured by the federal government and have several requirements for borrowers:
The homeowner must be at least 62 years old.
The home mortgage must be nearly paid off, and there must be equity in the home.
The homeowner must reside in the home.
The homeowner must complete a consumer counseling class.
The homeowner must not owe any debt to the federal government, such as delinquent taxes.
Homeowners choosing a reverse mortgage are still responsible for maintaining home insurance, paying property taxes and keeping up the property.
The majority of single-family homes are eligible for these loans, as are many condominiums and other types of housing, based on Federal Housing Administration guidelines.
Ohio law requires companies participating in reverse mortgage brokering or lending to obtain their Certificate of Registration according to the Ohio Residential Mortgage Lending Act.
The FHA requires the borrower to pay for mortgage insurance to protect the lender in case of default. This insurance premium may be bundled into the amount of the loan. Reverse mortgages end when the borrower either moves away from the home or dies. The borrower or their heirs are entitled to any remaining equity balance after the home is sold.
The number of reverse mortgages is expected to continue to rise with many Americans having inadequate savings to rely on. Consider the companies below if you decide a reverse mortgage in Cleveland is right for you.
This award-winning company prides itself on a 97 percent customer satisfaction rating from in-house surveys. American Advisors Group offers HECMs and an expert staff to assist with the process every step of the way. Customers say that although sometimes the process takes longer than they had hoped, it works out in the end and is well worth the wait.
This top-ranking reverse mortgage lender makes it a priority to earn and keep your trust. Finance of America Reverse has plenty to offer: lump sum, tenure payment and line of credit options; an average closing time of 30 days; and award-winning customer service. According to customers in Cleveland, if you’re unsure of what something means, the team at FAR will go out of their way to explain it to you.
Liberty Home Equity Solutions
As one of the country’s largest reverse mortgage providers, Liberty Home Equity Solutions has worked with more than 50,000 seniors since 2003, and all of that experience has led to their reputation as industry experts. Offering HECMs and a promise to match or beat all competitors, this lender is an industry favorite. Customers say they love the responsiveness and personal attention provided by Liberty Home Equity Solutions representatives.
Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.
Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.