Seattle Reverse Mortgages and Home Loans

People usually call me in one of two situations. Some have lived in the same house for decades, watched it become worth far more than they ever paid, and now want to use some of that value without leaving. Others are ready to move, maybe closer to family or into a home without stairs, and want to buy without taking on a new monthly payment.

A reverse mortgage can help with both. So can a regular loan, depending on your plans. This page covers what we offer for Seattle homes, the Washington rules that matter, and the questions I'd ask before you decide.

The short version

• We help with reverse mortgages and regular home loans for Seattle homes, through loan officers licensed in Washington.
• For reverse mortgages, that includes the HECM, the HECM for Purchase, and proprietary (jumbo) options.
• Home values matter here. If your home is worth more than the HECM limit, a jumbo reverse mortgage may give you access to more.
• Washington has senior property tax programs, and a reverse mortgage can affect your eligibility for some of them.
• You can do most of this from home, by phone, video, and usually a notary who comes to you.

Reverse mortgages for Seattle homeowners

The HECM

The HECM is the FHA-insured reverse mortgage, and it's the one most people get. You must be 62 or older, live in the home as your primary residence, and have enough equity. You can take the money as 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

If you're ready to move, the HECM for Purchase lets you buy your next home with a down payment and a reverse mortgage together, 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. It's popular with people who want to right-size, whether that means a single-level home in the city or something closer to the grandkids.

Proprietary (jumbo) reverse mortgages

The HECM uses your home's value only up to a national limit. See Lending Limits for the current figure. If your home is worth more than that, read on.

A proprietary (jumbo) reverse mortgage comes from a private lender, uses its own higher limits, and doesn't charge FHA mortgage insurance. Some programs may also accept condos that aren't FHA-approved, depending on what's available in Washington, which can matter if you own a condo. In Washington, proprietary programs don't offer a line of credit, and Finance of America's HomeSafe Standard is approved here for borrowers 60 and older. These programs set their own rules, so I check each one in writing and run it next to a HECM.

Washington property tax programs for seniors

This is the part most people don't know about, and it can be worth real money.

The senior exemption

Washington offers a property tax exemption for homeowners who are at least 61 by December 31 of the year before taxes are due, or who meet certain disability or veteran rules. You must own and live in the home, and your combined disposable income must be at or below your county's threshold. The exemption reduces the property taxes you owe, and you renew it at least once every six years.

The senior deferral

Washington also has a property tax deferral for some homeowners 60 and older with qualifying income. The state pays the taxes and puts a lien on the home, with interest, and the deferred amount comes due when the home is sold, the owner dies, or it's no longer the primary residence.

There's also a limited-income deferral for the second-half tax payment due in October, with applications due by September 1.

How a reverse mortgage fits

Here's why this matters for a reverse mortgage:

• A HECM and the deferral generally don't mix. Under HUD rules, a HECM borrower can't take part in a real estate tax deferral program or allow other liens on the home unless they're subordinate to the HECM.
• A deferral is a lien. If you already have a state deferral, it generally needs to be paid off or handled at closing for a HECM. I'll work with the title company on that.
• Property taxes are still your job. With or without an exemption, you must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms. An exemption that lowers your tax bill makes that easier.

Apply for the exemption through your county assessor. You must apply for the exemption before you apply for the deferral. See the Washington Department of Revenue for details.

Home loans for Seattle buyers and owners

Not everyone I talk with needs a reverse mortgage. We also help Seattle homeowners and buyers with:

• Buying a home and seeing your buying power before you shop.
• Refinancing to change your rate or term, or take cash out.
• Home equity loans and HELOCs.
• FHA loans, conventional loans, and jumbo loans for higher-priced homes.
• VA loans for eligible veterans and service members.

For a personalized quote, request a rate quote.

How we work with Seattle clients

Most of our Seattle clients never visit an office, and they don't need to. Here's how it usually goes:

1. A conversation. We talk by phone or video about what you're trying to do. I'll give you real numbers and tell you if a reverse mortgage isn't the right fit.
2. Counseling. For a HECM, you meet with an independent, HUD-approved counselor, usually by phone or video. See Reverse Mortgage Counseling.
3. Application and appraisal. An FHA appraiser visits your home. Your loan officer and our processing team handle the rest.
4. Signing. A notary usually comes to your home for closing.

Bring your family into the conversation. I always prefer it.

Seattle resources

• Washington Department of Revenue: property tax exemptions and deferrals
• Sound Generations, a Seattle-area nonprofit for older adults (formerly Senior Services of Seattle)
• City of Seattle
• HUD-approved housing counselors: hud.gov/counseling or (800) 569-4287

Common questions

Can I get a reverse mortgage on a Seattle condo?

Often, yes. For a HECM, the condo generally needs FHA approval, or the unit can sometimes qualify on its own through single-unit approval. Some jumbo programs may accept condos that aren't FHA-approved, depending on the program and what's available in Washington.

My home is worth more than the HECM limit. Do I still qualify?

Yes. The limit only caps the value used to figure your HECM amount. A jumbo reverse mortgage may give you access to more, and I'll show you both.

Will a reverse mortgage stop me from getting Washington's senior tax exemption?

The exemption is based on age, income, ownership, and occupancy. Reverse mortgage money is a loan, not income, but ask your county assessor how they count it. The deferral program is different: a HECM borrower generally can't take part in it unless the state's lien is subordinate to the HECM.

Do I have to come to an office?

No. You can work with us by phone and video, and in most cases sign at home.

Do you only do reverse mortgages?

No. We help with purchases, refinances, home equity loans, FHA, VA, conventional, and jumbo loans too.

Next step

Want to see real numbers for your Seattle home? Get My Estimate, find a loan officer for Washington, or call us at 530-888-6000. For statewide information, see our Washington page, and for the full picture on reverse mortgages, start with Reverse Mortgages.

Sources

• Washington Department of Revenue, Property tax exemptions and deferrals: dor.wa.gov
• Washington Department of Revenue, Property Tax Deferral for Senior Citizens and People with Disabilities: dor.wa.gov
• HUD, FHA Reverse Mortgage for Seniors (HECM): hud.gov