Premier Reverse Mortgage has been providing different home equity conversion mortgages (HECMs) and reverse mortgages to customers since 2012. The company offers great customer support and gives you the freedom to collect your funds in a way that works for you.
Premier has solid ratings on Trustpilot and the Better Business Bureau, and its site includes several guides, blog posts, and FAQs to help you learn more about reverse mortgages.
Loan types: Reverse mortgages
Loan products: FHA HECM, proprietary reverse mortgages, and reverse mortgage purchases
Minimum credit score: N/A
Repayment terms: Don’t pay until you sell/move out of your home or pass away
Working with Premier has many benefits, such as having many different types of reverse mortgages to consider and multiple ways to receive your funds. It also has several learning resources to boost your education on the topic, as well as great reviews and ratings.
However, Premier only accepts customers from a couple of states across the country and doesn’t disclose any interest rates on its website.
A reverse mortgage/HECM is a loan that lets you borrow against your home equity to secure funds without selling your home or making monthly repayments. You generally need to live in the home to qualify. You’ll also need to meet minimum age requirements, which are 62 for an HECM and 55 for a proprietary reverse mortgage.
To apply for a Premier reverse mortgage, begin by visiting the website and clicking “Request an Estimate.” Next, provide your ZIP code, home value, mortgage balance, age, address, name, and contact information.
Once you submit the form, the company reaches out within 24 hours to continue the process.
Premier has a 3-step qualification process to determine whether you can get a reverse mortgage. It begins with a credit history analysis that goes over the last few years to see if there are any blemishes like late payments, collections, or delinquent debt.
Next, the company does a residual income test to ensure you have enough to meet your various financial obligations. The exact amount required depends on where you live and the size of your family.
Lastly, Premier looks at your payment history relating to the property you own. It wants to verify that you’ve paid your property taxes, insurance, and any homeowner association dues over the past 2 years.
The application process also includes a mandatory counseling session and a home appraisal before Premier underwrites the application and eventually closes the loan. Closing generally takes a couple of weeks but varies on a case-by-case basis.
The company provides 3 types of reverse mortgage loans: FHA HECMs, proprietary reverse mortgages, and reverse mortgage purchases.
FHA HECM
The most common type of reverse mortgage is insured by the Federal Housing Administration (FHA). You need to be at least 62 years old to qualify, and residences like single-family houses, townhomes, condos, manufactured homes, and multi-unit properties are eligible.
Interest rates for FHA HECMs are generally adjustable. Both the lending limit and loan-to-value (LTV) ratio are set by the Department of Housing and Urban Development (HUD) and change periodically.
If you have an adjustable-rate FHA HECM, you can receive your funds in an upfront lump sum, a line of credit, or a monthly payment. Like all other FHA loans, this reverse mortgage has a 2% upfront mortgage insurance premium (MIP) charge.
Proprietary reverse mortgage
These are also known as jumbo or private reverse mortgages. Instead of having government backing, the lender takes on all the risk. You have to be either 55, 60, or 62 years old (depending on your state) to qualify, and the same property types are eligible as with FHA HECMs.
Interest rates are either fixed or adjustable, and the lending limits and LTV ratio are set by individual lenders instead of the government. Fixed-rate reverse mortgages force you to receive a lump sum payment, whereas ones with adjustable rates give you options, such as a line of credit.
Unlike FHA HECMs, these reverse mortgages don’t have any upfront or ongoing premiums/closing costs.
Reverse mortgage purchase
Known as an HECM for purchase, this option is very similar to an FHA HECM, except you use the funds to buy a new primary residence. While most traditional purchase mortgages need a 20% down payment, the required down payment for an HECM for purchase is around 50-60% of the purchase price.
Premier doesn’t post its rates online, as it says they change so frequently and are unique to each different loan situation. There’s no monthly payment or set repayment term, as you pay only once you leave or sell the residence. However, if you vacate the home for any reason for more than 12 months in a row, the loan becomes due.
You’re also free to pay it back at any time, as there are no prepayment penalties on FHA reverse mortgages. If you pass away while still living in the home, your heirs are responsible for paying back the loan from your estate or by selling the property.
Premier Reverse Mortgage provides a number of reverse mortgage options, and the site includes plenty of educational resources, FAQs, and guides. The company is clear about its qualification process, gives you several choices to receive your funds, and has great customer service reviews.
While it would be nice if the company offered mortgages in more states or displayed interest rates publicly, it’s still a great option for seniors who want to tap into their home equity for additional cash.
To reach out to Premier, you can email info@premierreverse.com, call 866-527-2210, or fill out an online form. The company provides support from 8am to 5pm (ET) on weekdays. It has solid reviews, a 4.5 rating on Trustpilot, and an A + rating from the Better Business Bureau. Positive comments highlight how helpful, knowledgeable, and professional the service is.
In addition, the Premier website contains helpful FAQs about how reverse mortgages work, what to expect, and more. There’s also a comprehensive blog that focuses on topics like obtaining a reverse mortgage and how to use the funds.