Reverse Mortgage

Reverse Mortgages

Unlock Your Home’s Equity with a Reverse Mortgage

A reverse mortgage is a financial tool that allows homeowners aged 62 and older to convert part of their home’s equity into cash, providing additional financial flexibility during retirement.

Key Features:

• Eligibility Requirements:

  • Age: Must be at least 62 years old.
  • Homeownership: Must own the home outright or have a low mortgage balance.
  • Primary Residence: The home must be your primary residence.

• Types of Reverse Mortgages:

  • Home Equity Conversion Mortgage (HECM): The most common type, insured by the Federal Housing Administration (FHA).
  • Proprietary Reverse Mortgages: Private loans not insured by FHA, often offering higher loan limits.
  • Single-Purpose Reverse Mortgages: Offered by some state and local governments, for specific purposes like home repairs or property taxes.

• How It Works:

  • No Monthly Payments: Unlike traditional mortgages, you don’t make monthly payments. Instead, the loan is repaid when you move, sell the home, or pass away.
  • Access to Funds: Receive funds through a lump sum, monthly payments, line of credit, or a combination of these options.
  • Interest and Fees: Interest is added to the loan balance over time, along with any applicable fees.

• Benefits:

  • Supplement Retirement Income: Use the funds to cover living expenses, medical bills, or other financial needs.
  • Stay in Your Home: Continue to live in your home while accessing its equity.
  • No Risk of Foreclosure: As long as you maintain the property, pay property taxes, and keep homeowners insurance, you won’t risk foreclosure.

• Considerations:

  • Impact on Inheritance: The loan balance must be repaid from the sale of the home, which can affect the amount of inheritance left to heirs.
  • Home Maintenance: You are responsible for maintaining the home and paying property taxes and insurance.
  • Loan Costs: Includes closing costs, mortgage insurance premiums, and other fees.

• Eligibility for Assistance:

  • Mandatory Counseling: Before obtaining a reverse mortgage, you must complete a counseling session with a HUD-approved counselor to ensure you understand the implications and options available.

Contact us today to explore how a reverse mortgage can help you access your home’s equity and enhance your financial security in retirement!