Reverse Mortgages in Spokane with Will Flanigan, NMLS #210976

Will Flanigan is a Spokane loan officer with NEXA Mortgage, licensed in Washington, Idaho, and Arizona. He helps Spokane homeowners age 62 and older understand and apply for reverse mortgages.

What a reverse mortgage is

A reverse mortgage is a loan. That is the first thing to understand, because it is often described as something else. It allows a homeowner who is 62 or older to borrow against home equity without making a required monthly principal and interest payment while living there. Interest and fees are added to the balance over time, and the loan must be repaid, typically when the last borrower sells the home, moves out permanently, or passes away.

The most common type is the Home Equity Conversion Mortgage, or HECM, insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development. Neither Will nor NEXA Mortgage is affiliated with HUD, FHA, or any government agency.

Who this page is for

This page is written for Spokane homeowners. Many of the people Will talks with have lived in the same house on the South Hill, in Shadle, on the North Side, or in Spokane Valley for decades. The mortgage is paid off or nearly so, the home has appreciated, and the question is how to use that equity without leaving the neighborhood, the church, the doctors, and the grandkids.

A reverse mortgage is one possible answer, but not the right one for everyone. Will's job is to explain how it works so you and your family can decide.

What you keep and what you owe

With a HECM, you keep the title to your home. You are responsible for paying property taxes, keeping homeowners insurance in force, paying any HOA dues, and maintaining the property. If those obligations are not met, the loan can become due.

The amount you can borrow depends on the age of the youngest borrower, the appraised value of the home, and current interest rates. Will can run the numbers for your situation after a conversation, since every case is different.

How you can receive the money

A HECM offers several ways to take the proceeds, and they can be combined:

• A lump sum at closing.
• A line of credit you can draw on when needed. The unused portion grows over time according to the loan terms.
• Scheduled monthly advances for a set period or for as long as you live in the home.

Some Spokane homeowners use a reverse mortgage to pay off an existing mortgage and eliminate that required monthly payment. Others set up a line of credit as a reserve for repairs or in-home care, or use a HECM for Purchase to buy a new home.

Costs and trade-offs to understand

A reverse mortgage has costs: an upfront FHA mortgage insurance premium, an ongoing mortgage insurance premium, an origination fee, third-party closing costs such as the appraisal and title work, and interest that accrues on the balance. Most can be financed into the loan, so the balance starts out higher than the cash you receive.

Because the balance grows over time, the equity left for you or your heirs shrinks. A HECM is a non-recourse loan, so neither you nor your estate will owe more than the home is worth when the loan is repaid, but there may be less left over than you expect.

Proceeds are loan advances, not income. They can still affect eligibility for needs-based programs such as Medicaid, so check with the program first if you receive those benefits.

HUD-approved counseling is required

Before you can close on a HECM, you must complete a counseling session with a HUD-approved housing counseling agency. The session is independent of the lender and covers how the loan works, the costs, the alternatives, and your obligations. You receive a certificate when it is complete, and the lender cannot proceed without it.

Will has been in lending since 2005 and grew up in Spokane. He meets in person when that is easier, welcomes adult children in the conversation, and will tell you plainly when a reverse mortgage does not seem like a good fit.

Frequently asked questions

Will the bank own my home?

No. You keep the title and remain the owner. The lender holds a lien, as with a traditional mortgage. The loan becomes due when the last borrower leaves the home permanently, or if taxes, insurance, and maintenance obligations are not kept up.

Can my spouse stay in the home if I pass away first?

If your spouse is a co-borrower, they can stay as long as they meet the loan obligations. If your spouse is younger than 62 or not on the loan, HUD has rules for an eligible non-borrowing spouse that may allow them to remain. Raise this in your counseling session.

Is a reverse mortgage the same as a home equity line of credit?

No. A traditional home equity line of credit requires monthly payments and can be frozen or called by the lender. A HECM does not require monthly principal and interest payments while you live in the home, and the line cannot be reduced as long as you meet the loan terms.

What happens to my heirs?

When the loan becomes due, your heirs can sell the home and keep any remaining equity, refinance the balance, or pay it off and keep the home. Because the loan is non-recourse, they will not owe more than the home is worth.

Are there reverse mortgages other than a HECM?

The HECM is the most common and the only reverse mortgage insured by FHA. Some lenders also offer proprietary reverse mortgages for higher-value homes. Will can explain whether one may fit your situation.

Ready to talk it through?

Get pre-approved online or book a call with Will. Call or text (509) 461-5069, or email [email protected].

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William Flanigan, Loan Officer, NMLS #210976. NEXA Mortgage, LLC, NMLS #1660690. Licensed in Washington, Idaho, and Arizona. Arizona Mortgage Banker License #BK-2006218. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit and property approval. Programs, rates, and terms subject to change. NMLS Consumer Access: https://www.nmlsconsumeraccess.org/

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William Flanigan, Loan Officer, NMLS #210976
NEXA Mortgage, LLC, NMLS #1660690
Licensed in Washington, Idaho, and Arizona. Arizona Mortgage Banker License #BK-2006218.
Equal Housing Lender.
NMLS Consumer Access: https://www.nmlsconsumeraccess.org/
Corporate Address: 5559 S Sossaman Rd Bldg #1 Ste #101, Mesa, AZ 85212
Phone: (509) 461-5069