Reverse Mortgage

What Is A Reverse Mortgage and How Can It Help You?

Our goal is that you become fully informed of this versatile mortgage loan and make the appropriate decision for you and your family given your unique situation.

It can be scary making a major decision about one of your biggest investments, the place that means the most to you. Deciding whether a reverse mortgage loan is right for you often requires education and expert advice. We hope the following information is beneficial as you explore whether a reverse mortgage loan is right for you.

A reverse mortgage loan is a unique loan that allows homeowner(s) 62 years of age and older to draw on the value of their home, which is paid to the homeowner(s) in a variety of payout options or used as a line of credit. One of the unique features of a reverse mortgage loan is that it does not require repayment until the homeowner(s) no longer reside in the residence, the last surviving borrower passes away, or does not comply with the loan obligations. An example of reverse mortgages or HECM guidelines / obligations are paying property taxes and insurance and maintaining the property to FHA guidelines (if the reverse mortgage loan is FHA's HECM loan).

Types of Reverse Mortgage Loans

There are different types of reverse mortgage loans. The two most popular are the HECM loan (Home Equity Conversion Mortgage, insured by the FHA) and jumbo or proprietary reverse mortgage loans¹ for high value homes.

We are reverse mortgage loan specialists and are here to assist you as you explore your options and whether a reverse mortgage loan is right for you. Our goal is that as you learn more about the reverse mortgage loan you have all the information you need to make the best decision for you and your family. We aim to provide world class service from start to finish.

Qualifications for Reverse Mortgage Loans

To qualify for a reverse mortgage loan there are some basic requirements, such as:

• At least one borrower (that will be on title) must be at least 62 years old (unless in the state of Texas, both borrowers must be 62 years old at the time the loan closes).
• The home must be maintained as the primary residence of the borrower/s for at least 6 months out of every year.
• There must be sufficient equity in the home. While there is no specific amount of equity required - as a general rule of thumb - you'd want at least 50% equity in your home since you will need to pay off your existing mortgage with the loan proceeds. The more equity you have the more loan proceeds you will have access to.
• A HECM’s (Home Equity Conversion Mortgage) underwriting standards are unique when compared to traditional mortgage loans. All applicants are subject to a financial assessment to determine their financial capacity and willingness to adhere to the loan obligations, such as paying taxes and insurance.

Keep in mind that each lender may have different qualification requirements based on multiple factors; like your financial situation, age, interest rates, home value, and other factors. Also, you do not need to pay off your home to apply for a reverse mortgage loan.

The cash you can potentially receive is based on the age of the youngest borrower, the current expected interest rate, the mortgage option selected, and the appraised value of the home. For instance, an older individual with a higher value home typically will be eligible for more than a younger person with the same home value at the same expected interest rate. How much money you can take in the first year is limited. For more information call us at (786) 597-7675