Question 1

What does Noah offer?

Accepted Answer

We offer an innovative, debt-free way for homeowners to access their home equity through an equity sharing model with no monthly payments. Homeowners can access the funding in as little as a few weeks and use the money however they want — to reduce their debt, finance home renovations, or cover education or other expenses.

Question 2

What is a reverse mortgage?

Accepted Answer

A reverse mortgage is a special type of home loan that allows homeowners to access a portion of their home equity into cash. The amount of money the homeowners can receive is determined by the age of the youngest borrower, interest rates, and the lesser of the home’s appraised value, sale price, and the maximum lending limit. Reverse mortgages are only available to seniors of age 62 and older. The most common type of reverse mortgages are the Home Equity Conversion Mortgage (HECM) that are backed by the Federal Housing Agency (FHA). However, unlike a traditional home equity loan or HELOC, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage. Borrowers may access the greater of 60% of the principal limit amount or all mandatory obligations (including property taxes, homeowner insurance etc.), as defined by the HECM requirements, plus an additional 10% during the first 12 months after loan closing. The max. amount under HECM is capped at $636,150, though some private lenders may offer more money.

Question 3

How much does a reverse mortgage cost?

Accepted Answer

Most reverse mortgages have fixed interest rates, but there are also adjustable rate options. These rates usually range from 4-6% APR. On top of the APR, reverse mortgages often have high initial fees. Typically, reverse mortgage fees are 2% of the first $200,000 of the property’s value and 1% of the amount over $200,000.

Question 4

What fees does Noah charge?

Accepted Answer

As part of the final application and closing, we charge a one-time servicing fee of $2,000 or 3% of the financing amount, whichever is higher. This fee, as well as additional fees paid to third parties, are deducted from your financing amount as part of the closing.

Question 5

What amount is due to Noah at the end of the term?

Accepted Answer

At the expiry of your financing term, the final amount due is based on a current appraisal of your home. If the home has gone up in value, Noah will receive the initial investment plus a percentage of the appreciation of the home. If the home has gone down in value, Noah will receive less than its initial investment, as we share in the loss in value of the home with you. The percentage sharing of Noah financing is disclosed upfront at the initiation of our investment agreement and remains constant throughout. Find an illustrated example of how our equity sharing model works here.

Question 6

I already have a reverse mortgage.  Do I qualify for home equity sharing with Noah?

Accepted Answer

We review homes with a reverse mortgage on a case-by-case basis, based on the existing balance among other factors.

Noah vs. Reverse Mortgages

A better way to access your home equity

Still wondering if Noah is right for you?