Spokane Reverse Mortgages and Home Loans

Most people who call me want three things answered: what a reverse mortgage costs, what it actually does, and whether there's a better option.

Good. That's the right way to look at it. This page lays out what we offer for Spokane homes, the Washington property tax programs worth knowing about, and how to decide.

The short version

• We help with reverse mortgages and regular home loans for Spokane homes, through loan officers licensed in Washington.
• 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 Washington.
• Washington's senior property tax programs can lower or delay your taxes, but a HECM generally can't be combined with the deferral.
• Manufactured homes can qualify for a HECM if they meet HUD's rules.
• You can do most of this from home. Phone, video, and usually a notary who comes to you.

Reverse mortgages for Spokane 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.

A lot of Spokane homeowners use a HECM to pay off a remaining mortgage, which frees up that monthly payment. Others set up a line of credit and leave it alone as a safety net. Read about the standby line of credit strategy.

The HECM for Purchase

Moving closer to family, or into a home that's easier to live in? 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.

Manufactured homes

People often assume they can't get a reverse mortgage on a manufactured home. Many can. For a HECM, the home generally must have been built after June 15, 1976, sit on a permanent foundation, and be titled as real property, among other rules. Bring me the details and I'll tell you where you stand. See Can I do a reverse mortgage on a manufactured home that has a stick-built addition?

Proprietary (jumbo) reverse mortgages

If your home is worth more than the HECM limit, a jumbo reverse mortgage may give you access to more. See Lending Limits for the current HECM limit. Availability depends on the program and the property, so I check each one in writing. In Washington, proprietary programs don't offer a line of credit, so a jumbo there is a lump sum or another payout the program allows. Finance of America's HomeSafe Standard is approved in Washington for borrowers 60 and older.

Washington property tax programs for seniors

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. It reduces the taxes you owe, and you renew it at least every six years.

The senior deferral

Homeowners 60 and older with qualifying income may be able to defer property taxes. The state pays them and puts a lien on the home, with interest. The deferred amount comes due when you sell, die, or stop living there. There's also a limited-income deferral for the second-half payment due in October, with applications due by September 1.

How a reverse mortgage fits

• 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. If you have a deferral now, ask the Spokane County Assessor what's owed before you apply.
• A deferral is a lien. An existing state deferral generally needs to be paid off or handled at a HECM closing.
• Property taxes are still your job. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms. The exemption can make that easier.

You must apply for the exemption before the deferral. See the Washington Department of Revenue.

Deferral or reverse mortgage? How to think about it

They solve different problems, so it helps to be clear about yours.

• If property taxes are the only strain, the state deferral may be all you need. It covers your property taxes (and some special assessments) and nothing else, and it comes due when you sell, die, or move out.
• If you still have a mortgage payment, or want a cushion for the years ahead, a reverse mortgage does more. It can pay off your mortgage and give you a line of credit. But you must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.
• If you're not sure, we'll put the two side by side. Sometimes the honest answer is the deferral, and I'll tell you so.

Home loans for Spokane 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 own numbers.

How we work with Spokane clients

1. A conversation by phone or video about your goals and your numbers.
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.

Spokane resources

• Washington Department of Revenue: property tax exemptions and deferrals
• City of Spokane
• HUD-approved housing counselors: hud.gov/counseling or (800) 569-4287

Common questions

Can I get a reverse mortgage on a manufactured home in Spokane?

Often, yes, if it meets HUD's HECM rules, including the build date, foundation, and title.

Will a reverse mortgage affect my Washington property tax exemption?

The exemption is based on age, income, ownership, and occupancy. Loan money isn't income, but confirm with the county how they count it. The deferral is different: a HECM borrower generally can't take part in it unless the state's lien is subordinate to the HECM.

Do I need to have my home paid off?

No. Any current mortgage is paid off from the reverse mortgage at closing. See Does my home need to be paid off?

Do I have to meet in person?

No. You can work with us by phone and video.

Next step

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