Watermark Reverse Mortgage Reviews

Watermark Reverse Mortgage is a licensed mortgage corporation established in 2006 and based in Irvine, California. The company is licensed in most states and provides reverse mortgage solutions, including FHA-insured Home Equity Conversion Mortgages (HECMs) and proprietary loans for homes valued over $1.4 million. Borrowers can choose from lump sum payouts, monthly disbursements or growing lines of credit to support retirement goals.

Applying with Watermark Reverse Mortgage starts with an estimate and ends with closing, with most fees able to be rolled into the loan. The process includes these steps:

• Get an estimate by scheduling a call with an advisor or using the online tool to see potential loan amounts, down payment needs and closing costs.
• Choose a loan type between FHA-insured HECMs and proprietary options for homes valued over $1.4 million, with payout choices like lump sum, monthly payments or a line of credit.
• Submit your application, which is subject to credit, underwriting and property approval.
• Meet ongoing obligations by keeping the home as your primary residence, paying taxes and insurance, and maintaining the property.

Watermark Reverse Mortgage application features

Watermark Reverse Mortgage doesn’t publish its rates online. Borrowers must contact an advisor for current information, as rates depend on factors like age, home value and loan type.

Watermark Reverse Mortgage offers two primary loan types designed to help homeowners access equity in retirement:

• FHA-insured Home Equity Conversion Mortgage (HECM): Available to borrowers aged 62 and older, this federally backed reverse mortgage allows eligible homeowners to convert home equity into cash. Funds can be disbursed as a lump sum, monthly payments or a line of credit.
• Proprietary reverse mortgage: Designed for homes valued over $1.4 million, this private loan option is available to borrowers aged 55 and older. It offers flexible disbursement methods and may include higher loan limits than standard HECM products.

To qualify for a reverse mortgage through Watermark Reverse Mortgage, you’ll need to meet several basic criteria. Requirements vary slightly depending on the loan type, but here are the general guidelines:

• You must be at least 62 years old for FHA-insured HECM loans or 55 years old for proprietary reverse mortgages.
• Your home must be your primary residence.
• Eligible properties include single-family homes, townhouses, two- to four-unit residences, multifamily buildings with five or more units, condominiums, site condos, manufactured homes, manufactured condos and co-ops.
• No minimum credit score, debt-to-income ratio or cash reserves are required, but you must complete a financial assessment.
• You must be able to maintain the home and stay current on property taxes and homeowner’s insurance.
• For purchase loans, borrowers must make a down payment that usually covers the gap between the home’s price and the available loan amount, along with closing costs.

Watermark Reverse Mortgage outlines several fees associated with its FHA-insured reverse mortgage products. Most costs can be rolled into the loan, reducing the need for up-front payment at closing.

Here are the fees Watermark specifically mentions for FHA-insured HECM loans:

• Origination fee: Capped at $6,000, based on home value
• Closing costs: Includes title services, recording fees and other third-party charges
• Mortgage insurance premium: Typically 2% of the home’s appraised value or FHA lending limit on HECMs
• Counseling fee: Required for HECM borrowers and set by counselors from the Department of Housing and Urban Development
• Appraisal fee: Varies by property type and location
• Credit report fee: Applies during financial assessment

Proprietary reverse mortgages may have different cost structures.