Oklahoma Reverse Mortgages

An Oklahoma reverse mortgage is a type of loan available to Oklahoma homeowners aged 62 or older that allows them to convert part of the equity in their homes into cash. In Oklahoma, reverse mortgages follow the same basic principles as those in other states, but there may be some specific regulations or considerations that apply. 

To qualify for a reverse mortgage in Oklahoma, you must be at least 62 years old and own your home outright or have a significant amount of equity in it.

Oklahoma homeowners can generally choose between several types of reverse mortgages, including Home Equity Conversion Mortgages (HECMs), which are insured by the Federal Housing Administration (FHA), or proprietary reverse mortgages offered by private lenders.

Before obtaining a reverse mortgage in Oklahoma, homeowners are required to undergo counseling from a HUD-approved counselor. This counseling session aims to ensure that homeowners fully understand the implications and obligations of a reverse mortgage.

The amount of money you can borrow with a reverse mortgage in Oklahoma depends on factors such as your age, the appraised value of your home, and current interest rates. Additionally, the property used as collateral must be your primary residence and meet certain FHA requirements.

Unlike traditional mortgages, Oklahoma reverse mortgages do not require monthly mortgage payments. Instead, the loan becomes due when the borrower moves out of the home permanently, sells the property, or passes away. At that time, the loan, along with accrued interest and fees, must be repaid. If the borrower’s heirs wish to keep the home, they can pay off the loan balance or 95% of the appraised value, whichever is less.

Oklahoma, like other states, has safeguards in place to protect borrowers who obtain reverse mortgages. For example, lenders are required to provide detailed disclosures about the terms and costs of the loan, and borrowers have a “right of rescission,” allowing them to cancel the loan within a certain period without penalty.

It’s essential for Oklahoma residents considering a reverse mortgage to understand how it may impact their eligibility for Medicaid and other need-based benefits. While the loan proceeds typically do not affect Social Security or Medicare benefits, they could impact certain state or federal assistance programs.

Before proceeding with a reverse mortgage in Oklahoma, it’s advisable to consult with a Oklahoma Reverse Loan Specialist who can provide personalized guidance based on your individual circumstances and goals.