American Senior Mortgage Loans Review

Overview

America Senior is based in California and is a trading name for HighTechLending Inc. The company is approved by the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD).

American Senior sells specializes in all types of reverse mortgage products, including home equity conversion mortgages (HECMs), Jumbo Reverse Mortgages, and HECMs for purchase. There is no repayment of the loan balance until the home is sold or the borrower passes away. American Senior’s insurance policy covers any remaining balance after the sale of the home.

Suitable For?

American Senior Reverse Mortgages are suitable for seniors aged 62 and over who live in one of the states covered by American Senior and want to access their home equity without making monthly payments.

You will need sufficient equity in your home to qualify, and the property needs to be your primary residence. If you’re applying for a HECM, you must attend a counseling session with a government-approved agency.

You will need to show proof of adequate income to make sure you can continue to maintain the property. This is because although you will not have to repay the loan, you must continue to pay homeowner’s insurance, property taxes, and home maintenance costs.

Types of Loans/Products

American Senior offers three types of reverse mortgage products: Home Equity Conversion Mortgages (HECM), HECMs for Purchase, and Jumbo Reverse Mortgages.

Home Equity Conversion Mortgages (HECM)

This loan is insured by the Federal Housing Administration (FHA) and allows qualified borrowers to access their home equity without having to make monthly payments. You must maintain property taxes, insurance, and other related obligations for the life of the loan. The amount you can borrow will depend on your age (or your partner’s age if younger), the value of your property, and any outstanding mortgage. The maximum amount is $718,938.

HECM for Purchase

This allows for the purchase of a new primary residence with a reverse mortgage, eliminating the need for a traditional mortgage. It is insured by the FHA and is a popular choice among those looking to downsize or move closer to family members. You will still need to make a down payment on your property and commit to paying property taxes and homeowner’s insurance. However, you won’t need to make regular monthly mortgage payments. As with regular HECMs, the amount you can borrow will vary depending on your circumstances. The maximum amount you can borrow is either $718,938 or the property sale price, whichever is lower.

Jumbo Reverse Mortgages

This is a non-government-backed proprietary loan for those with higher home values. It allows access to larger funds than traditional reverse mortgages. A Jumbo Reverse Mortgage is a good option if your property is worth over $1,089,300—the maximum house value used to calculate HECMs. The maximum loan amount available is $4,000,000.

The Application Process

Before you start the application process, you can ask American Senior for a free information kit to help you understand the basics of the Reverse Mortgage product. If you decide to start the application, you must complete the following steps.

1. Call American Senior or complete the online application form, providing details of your house value, outstanding mortgage, date of birth, and email address. A loan officer will be in touch to arrange a meeting.
2. Your Loan Officer will assist you in filling out and signing the loan application. Afterward, they will provide an estimate of how much capital you can receive, the full cost of your loan, and any additional required documents required by FHA regulations.
3. The next step is an appraisal. To calculate the amount you can receive for your HECM Loan, a certified FHA appraiser will assess and evaluate your home's value.
4. If your reverse mortgage application is approved, you will receive your final loan documents.
5. Finalizing a reverse mortgage can be done from the comfort of your own home. All you need to do is sign the documents and have your signature verified by a notary.
6. You can choose how you'd like to receive your loan funds—whether through a line of credit, lump sum payment, term payments, or a combination of all three.

If you are applying for a HECM or HECM For Purchase, you are legally required to attend a counseling session with a HUD-approved counselor.

Repayment Terms

You don't have to repay a reverse mortgage until your house is sold or you pass away. The interest will accumulate over time, so when it's time to repay the loan, the amount you owe will be larger than what was initially borrowed. The extra money needed to cover this increased amount can come from selling your home or other assets. If there is still a balance left after all of this, American Senior's insurance policy will take care of it and not pass on any cost to your family members.

Help & Support

To contact American Senior’s customer support team, telephone them at (866)-505-3616, 8am to 6pm PT, Monday to Friday. You can also use the online webchat or fill out the contact form on the website to email them.

The website has limited information with no FAQs, knowledge center, or blog. However, if you send American Senior your contact details, it will send you its 12-page Retire Better reverse mortgage guide.

Summary

American Senior offers a wide range of reverse mortgage options and could be a good option for you if you’re looking to access the equity in your home without having to make monthly payments. They offer HECM and propriety Jumbo Reverse Mortgage loans with a range of funding structures, including lump sums, term payments, or a combination of both. If you are over 62, own your own home, and want to learn more, American Senior’s customer support team can help answer your questions.

Physical Address

2030 Main Street, Suite #500, Irvine, CA 92614

Methodology

This review was compiled using information from the company’s website, information pack, and online chat customer support. The Nationwide Multistate Licensing System (NMLS) website was also consulted.