Reverse Mortgages

Allow your home to pay you every month. No income is required to qualify, and there are few disadvantages to a reverse mortgage.

Reverse mortgages are loans against the equity built up in your home from years of making payments. There are simple guidelines on who qualifies for these loans and when they may be applied for.

The difference between this type of home loan and a standard home equity loan is that there is no required repayment structure. This mortgage is not repaid until the homeowner either passes away or the home is no longer their primary residence.

Who qualifies?

Eligibility is very simple. The borrower must be a homeowner at least 62 years old, own the home completely or be able to pay off the balance of the mortgage at closing with the funds from this mortgage. The borrower must live in this home as their primary residence, as well. In some cases, credit counseling is a requirement prior to obtaining the loan. Modify your loan and change your life, right here.

Is your home eligible?

If your home is a single family residence or a property with up to four units that are owned and occupied by you, you will qualify. In addition, townhouses, condominium units, detached homes and some prefab homes can be eligible, too. Individual condo units may qualify with the FHA's Spot Loan.

How do reverse mortgages work?

With standard home equity loans, your income versus debt ratio must be sufficient for you to qualify and you incur a monthly payment. The differences between reverse mortgages and bank home equity loans are that these types of home loans will pay the equity directly to you. You do not need any income to qualify!

The income you receive is completely tax free. Imagine how you will use your new monthly income. Home repairs? Or maybe you want to take that trip you have been only until now dreaming about?

How much you are able to borrow hinges on your current age, the prevailing interest rate, and the home’s appraised value or the FHA's mortgage limits in your area, whichever happens to be less. The more value your home holds, the higher your age and a lower interest rate means you can borrow more.

You will not make any payments as long as the house is your primary residence; and this mortgage will not be due. However, things like property taxes, insurance and utilities are still your responsibility. With a reverse mortgage, you will never be foreclosed or otherwise forced from your home for "missing a mortgage payment."

Will I be able to leave my home or estate to my heirs?

Absolutely! As long as you or one of the other borrowers lives in the house and keeps the taxes and other responsibilities current, the loan is not due.

When it comes to an estate left behind, the mortgage will be due to the lender. This will be paid through either selling the home or using the life insurance proceeds.

How can I receive the money?

The equity can be paid to you in any of these five ways:

1. Tenure - Monthly payments
2. Term of equal payments for a selected period of time.
3. Line of Credit - Payments or installments with times and amounts chosen by the borrower until the line of credit are completely used up.
4. Modified Tenure of Line of credit combined with tenure.
5. Modified Term of Line of credit combined with term.

Feel secure knowing that you own your home, and not the bank. The freedom that comes from having extra income each month, if you choose this plan, is uplifting.

You will never make another mortgage payment again once you qualify for this home loan, and you can refinance or sell whenever you wish without any penalty.

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