Wholesale reverse mortgage loans are not made available directly to the consumers. These loans are first made available to the reverse mortgage lenders. These lenders are provided the wholesale reverse mortgage loans at a discount rate. There after, the lenders extend the same reverse mortgage loan to the consumers.
Not all organizations sell wholesale reverse mortgage loans. Only three organizations or agencies extend wholesale reverse mortgage loans. They are:
Financial Freedom Cash Account
Fannie Mae
FHA or Federal Housing Authority
The wholesale reverse mortgage product of FHA or the Federal Housing Authority is referred to as the HECM or Home Equity Conversion Mortgage. Under this loan program, the maximum amount, which may be availed as loan is $360,000. However, the limit also depends on the location of the property in question. The Home Equity Conversion Mortgage is the largest selling reverse mortgage loan program sold in the United States of America, accounting for about 90% of all reverse mortgage loan programs.
The FHA as well as HUD or Housing and Urban Development Department of United States of America backs the wholesale reverse mortgage loans offered by FHA or Federal Housing Authority.
This guarantee means that the reverse mortgage lender is assured of getting back the entire amount of the loan along with the applicable rate of interest. Not only that the consumer is also entitled to get the loan amount assured. The lender gets the money as soon as the reverse mortgage agreement expires.
With regard to Fannie Mae, an individual may avail of $417,00 as Home Keeper reverse mortgage loan. However, unlike other lenders, Fannie Mae extends financial assistance for buying a less expensive dwelling place. Even though, Fannie Mae is not a government body, nevertheless, the norms they follow are very strict and at par with the regulations or norms framed for wholesale reverse mortgage loans guaranteed by the government bodies.
As a rule, no consumer can avail of the wholesale reverse mortgage loan directly and needs to approach a reverse mortgage loan lender. One may also compare various quotes offered on the World Wide Web.