Reverse Mortgage Overview

 

Access Your Home Equity with a Reverse Mortgage

 

If you’re looking for ways to supplement your retirement income, a Federal Housing Administration (FHA) insured reverse mortgage loan may be the answer. A reverse mortgage loan allows you to access a portion of your home’s equity to obtain tax-free* funds without having to make monthly mortgage payments. If you’re 62 years of age or older and have sufficient home equity, you may be able to get the funds you need to:

• Pay off your existing mortgage**

• Continue to live in your home and maintain the title

• Pay off medical bills, vehicle loans or other debts

• Improve your monthly cash flow

• Fund necessary home repairs or renovation

• Build a “safety net” for unplanned expenses

 


 

Eligibility

Applying for a reverse mortgage loan is simple. To be eligible for a reverse mortgage loan, some key requirements are:

• Homeowner(s) must be at least 62 years of age or older

• Live in your home as your primary residence and have sufficient equity

• Be able to pay off your existing mortgage through the reverse mortgage loan proceeds

• Live in a single family home, two to four unit owner-occupied home, town house, approved condominium or manufactured home.

Requirements

In addition to the eligibility requirements, you must also meet the following conditions to obtain a reverse mortgage loan:

• Complete a HUD approved counseling session

• Maintain your home according to FHA requirements***

• Continue to pay property taxes and homeowners insurance

How a Reverse Mortgage Works

FHA insured “Home Equity Conversion Mortgages” (HECMs) are a safe, secure loan that lets you access your home’s equity to get cash for your retirement funding needs. The amount you receive is based on current interest rates, the age of the youngest borrower and the lesser of the appraised value of your home, sale price or the maximum lending limit. In general, the older you are, the more equity you have in your home and the lower your mortgage loan balance; the more money you can expect from a reverse mortgage loan.
 



Receiving Your Money

With a fixed rate reverse mortgage loan you can receive your money in a lump sum. With an adjustable rate reverse mortgage loan you can receive your money in fixed monthly payments, a line of credit which you can draw upon as needed or a combination of both options.

Repaying the Reverse Mortgage

Loan repayment is not due as long as you live in the home as your primary residence, continue to pay required property taxes and homeowners insurance and maintain the home according to Federal Housing Administration requirements. You or your heirs will not be required to pay more than the value of your home at the time the loan is repaid; even if your loan balance exceeds the value of your home, provided you or your heirs decide to sell the home. Best of all, any remaining equity goes to you or your heirs once the loan is repaid.

 

“Loan Repayment is not due as long as you live in the home as your primary residence.”

Call for Additional Information 
call (888) 603-1550

* Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.

** Your current mortgage, if any, must be paid off before obtaining any funds from a reverse mortgage loan; you can use proceeds from the reverse mortgage loan for this purpose.

*** If your home needs repairs to be eligible for a reverse mortgage loan, you may be able to use the proceeds of the loan to accomplish this.

 

Click to Learn More...
The Myths & Realities of a Reverse Mortgage


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