Reverse Mortgages FAQ

Reverse Mortgages, what are they?

Reverse Mortgage Mortgage is a type of loan that provides you with a monthly income, a lump sum of cash, or a line of credit. Or any combination you wish. You do not make any payments on this type of home loan for as long as you live in your home. Under the FHA/HECM program monthly income you receive from the Reverse Mortgage is guaranteed and you will receive it as long as you remain living in the home. You can never owe more than your home is worth, no matter how long you live.

I have heard that I do not own my home with this type of home loan?

Absolutely not, you continue to own your home and remain on title just like you would with any other type of home loan. You can sell your home at any time and pay it off, or you can refinance at any time you wish. There is no penalty for doing so.

Is it hard to qualify?

No, it is actually very easy. There is no income qualifying and very minimal credit requirements. As long as you are not currently in foreclosure or bankruptcy and have sufficient equity you qualify. You must be 62 years of age and own a home that you live in as your primary residence.

What types of Reverse Mortgages are available?

There is the FHA program called the “Home Equity Conversion Mortgage”. This is the most popular and it is insured by the federal government. We offer the very newest government programs such as the HECM Advantage and the HECM 100. Fannie Mae also offers a Reverse Mortgage called the “Home Keeper”.

How much can I qualify for?

Your Reverse Mortgage loan amount and the cash you will receive are determined by several factors. How many borrowers there are and their ages, plus the value of the home and the current interest rate.

How can I make sure a Reverse Mortgage is right for me?

Counseling by a neutral third party is required prior to processing a loan application. No processing of the loan can take place until the counseling certificate has been issued and we have a copy. However we will provide detailed information so you can learn as much as you can while you are making a decision.

Where can I get counseling?

We have a list of approved counselors and will be happy to refer you to the nearest one. Counseling can also be done by phone.

What about closing costs for the Reverse Mortgage?

There are normal closing costs associated with this type of loan similar to that on other types of home loans. Most of the closing costs can be financed in the Reverse Mortgage home loan. You may be asked to pay for an appraisal in advance of closing. In most cases that is the only fee you pay in advance of closing. You will be provided with a Good Faith Estimate of closing costs so you can see what the costs are before you close or pay for an appraisal.

When is the Reverse Mortgage due and payable?

The Reverse Mortgage home loan is due when the home is sold or when you permanently leave the home. In the event of death the surviving spouse will remain at the residence and continue to receive payments for the rest of his or her life. There is no reduction in the amount of cash received per month. All the terms of the Reverse Mortgage remain the same. This is true providing that both husband and wife took the loan out together. When both spouses pass away the heirs will have the option of selling the residence and paying off the Reverse Mortgage. Or the heirs may pay it off with other assets, or they can refinance the home with another mortgage. All remaining equity belongs to your heirs.

How does the Reverse Mortgage affect my Taxes and Social Security?

The proceeds from a Reverse Mortgage are not considered income and therefore are not subject to income tax and have no affect on Social Security benefits. We recommend that you consult with your tax advisor.

Ready To Act? Apply Now and choose Reverse Mortgage as Purpose of Loan.

Articles About Reverse Mortgages

Types of Reverse Mortgages

Cash Account Reverse Mortgages :: Fannie Mae Homekeeper Reverse Mortgages :: FHA HECM