What is a reverse mortgage?
A Reverse mortgage is a loan available to seniors over the age of 62 which allows them to convert the equity in their home into cash. A reverse mortgage can also be used to purchase a home.
How can I use the money I receive from a reverse mortgage?
There is no restriction on how the proceeds from a reverse mortgage can be used.
How can I qualify for a reverse mortgage?
To qualify for a reverse mortgage a borrower must be at least 62 years old, own a home, and have sufficient equity in that home. A lender will also complete a financial assessment of the borrower.
Will my home qualify for a reverse mortgage?
Single-family homes, 2-4 unit properties (one unit occupied by owner), FHA-approved manufactured homes, HUD approved condominiums, and townhomes are eligible for a reverse mortgage.
How much money can I get from a reverse mortgage?
The amount will vary borrower to borrower and is based on a few factors including age of the youngest borrower, current interest rates, value of your home, and how much you may owe on an existing mortgage.
Will the government own my home?
No. You will retain title and ownership of your home until the last borrower passes away or moves away from the home. Once the last borrower passes away, the property is left to the borrower’s heirs. The heirs have 12 months to decide what they want to do with the property. If they want to keep the property, they will pay off the reverse mortgage with a mortgage of their own, insurance money, or other means that they may have. If the heirs do not want to keep the property, they will sell it, payoff the reverse mortgage, then the remaining equity is theirs to keep.
Does my credit have to be perfect?
This program is not credit score driven. The underwriting is done manually by a real person. It is common that borrowers have had difficulties throughout their lives. We are able to make decisions based on real life situations instead of relying on a computer to give an impersonal answer.
Is the Reverse Mortgage for poor people?
The perception of the reverse mortgage has changed. It is no longer considered a mortgage of last resort. Many affluent senior borrowers are using the reverse mortgage as part of their retirement planning. Many financial planners and estate attorneys are recommending the reverse mortgage as a valuable tool to enhance the overall quality and enjoyment of retirement life.
Am I locked into the Reverse Mortgage for life?
You can sell your property or payoff your reverse mortgage at any time. Their is no pre-payment penalty. Seniors often decide to downsize or move closer to family at times in their lives. A lot of time, they sell the property and use the remaining equity to purchase another home with a reverse mortgage. The Reverse for Purchase program is a great tool that few people realize is an option. We can walk you through it and answer all of your questions.