Portland Reverse Mortgages and Home Loans

We've helped Oregon homeowners for a long time, and we have loan officers licensed in Oregon.

People usually come to us for one of three reasons: they want to stop making a mortgage payment, they want a safety net for the years ahead, or they want to move into a home that fits the next stage of life. A reverse mortgage can help with all three. But in Oregon, there's a property tax wrinkle you need to know about first.

The short version

• We help with reverse mortgages and regular home loans for Portland homes, through loan officers licensed in Oregon.
• Reverse options include the HECM, the HECM for Purchase, and proprietary (jumbo) loans. Finance of America's HomeSafe Standard, one of the programs we compare, is approved in Oregon.
• Oregon's property tax deferral program generally doesn't allow newer reverse mortgages. If you use that program, this decision affects it.
• You can do most of this from home, by phone, video, and usually a notary who comes to you.

Reverse mortgages for Portland homeowners

The HECM

The HECM is the FHA-insured reverse mortgage. You must be 62 or older, live in the home as your primary residence, and have enough equity. You can take a line of credit, monthly payments, a lump sum, or a mix.

There are no required monthly mortgage payments. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.

The HECM for Purchase

Thinking about trading the stairs and the yard for something simpler? The HECM for Purchase combines a down payment with a reverse mortgage to buy your next home, with no required monthly mortgage payment afterward. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.

Proprietary (jumbo) reverse mortgages

If your home is worth more than the HECM limit, a jumbo reverse mortgage may give you access to more and doesn't charge FHA mortgage insurance. See Lending Limits for the current HECM limit. These programs set their own rules, so I run them next to a HECM.

Oregon's property tax deferral and reverse mortgages

This is the most important Oregon-specific thing on this page.

What the deferral program does

Oregon's Senior and Disabled Property Tax Deferral program lets qualifying homeowners have the state pay their property taxes, with a lien on the home. The deferred taxes build simple interest and are repaid when the home is sold, the owner dies, or the owner moves out, among other events. There are income and home value limits, an April 15 deadline, and you recertify every two years.

Where reverse mortgages come in

In 2011, Oregon changed its property tax deferral rules to exclude homes with reverse mortgages. The concern is simple: if the reverse mortgage uses up the equity, there may be nothing left to repay the deferred taxes.

Today, the Oregon Department of Revenue says a reverse mortgage taken out between July 1, 2011 and December 31, 2016 may still qualify, if you have at least 40 percent equity when you apply. A reverse mortgage outside that window generally doesn't.

What that means for you

• If you're in the deferral program now and want a reverse mortgage, talk with the Oregon Department of Revenue and with me before you apply. The deferral is a lien, and HUD rules don't let a HECM borrower take part in a tax deferral program or allow liens unless they're subordinate to the HECM. So the deferral will generally need to be paid off at closing, often from the reverse mortgage itself. After that, you'd pay your property taxes yourself.
• If you're thinking about the deferral program, compare the two side by side. The deferral handles only property taxes. A reverse mortgage can pay off a mortgage, give you a line of credit, and more, but you must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.
• Either way, run the numbers. For some people, the deferral alone is enough. For others, a reverse mortgage solves a bigger problem. I'll tell you which I think fits.

See the Oregon Department of Revenue deferral page for current rules.

Questions to ask before you choose

1. Am I in the state deferral program now, and how much is owed on it?
2. Is property tax my only problem, or do I also have a mortgage payment or other needs?
3. How long do I plan to stay in this home?
4. If I get a reverse mortgage, can I comfortably pay property taxes, homeowners insurance, and upkeep on my own?
5. Does my spouse or family understand the plan?

Bring those answers to our first conversation and we'll get to the right choice quickly.

Home loans for Portland buyers and owners

We also help with:

• Buying a home and seeing your buying power before you shop.
• Refinancing.
• Home equity loans and HELOCs.
• FHA loans, conventional loans, and jumbo loans.
• VA loans for eligible veterans and service members.

Request a rate quote for your numbers.

How we work with Portland clients

1. A conversation by phone or video.
2. Counseling with an independent, HUD-approved counselor for a HECM, usually by phone or video. See Reverse Mortgage Counseling.
3. Application and appraisal. An FHA appraiser visits the home.
4. Signing usually at home with a mobile notary.

Portland resources

• Oregon Department of Revenue: Senior and Disabled Property Tax Deferral
• City of Portland
• HUD-approved housing counselors: hud.gov/counseling or (800) 569-4287

Common questions

Can I get a reverse mortgage if I'm in Oregon's property tax deferral program?

You can get a reverse mortgage, but a newer reverse mortgage generally keeps you out of the deferral program, and the deferred taxes will generally need to be repaid, often at closing from the loan. Talk with the Department of Revenue first.

Why did Oregon stop allowing reverse mortgages in the deferral program?

Because the state is repaid from the home's equity, and a reverse mortgage uses equity over time. The concern is that there might be nothing left to repay the deferred taxes.

Do I need to meet you in person?

No. Most Portland clients work with us by phone and video and sign their documents at home with a notary.

My home is worth more than the HECM limit. What then?

You still qualify for a HECM, which uses value up to the limit. A jumbo reverse mortgage may give you access to more.

Next step

Get My Estimate, find a loan officer for Oregon, or call us at 530-888-6000. See our Oregon page and the full guide to Reverse Mortgages.

Sources

• Oregon Department of Revenue, Senior and Disabled Property Tax Deferral Program: oregon.gov
• "Oregon State Legislature Bars Reverse Mortgages from Tax Deferral Program," HousingWire, July 18, 2011: housingwire.com
• HUD, FHA Reverse Mortgage for Seniors (HECM): hud.gov