A Reverse Mortgage is not just about money... it's about opening up new possibilities that give you a stress-free love of life.
What Is A Reverse Mortgage?
A Reverse Mortgage is a government-insured, non-recourse loan, which allows borrowers, 62+, to turn a portion of their home equity into cash. If you're like most people, you have many questions about reverse mortgages. The following information is provided to give you an introduction to the facts about reverse mortgages. It's also advised that you contact Eileen Kennedy to get answers to your specific questions.
Benefits of A Reverse Mortgage:
- No monthly Mortgage Payments. The Borrower must continue to pay property taxes and insurance, HOA dues, if applicable, and maintain the home in good condition.
- Proceeds are tax-free. We are not Tax or Financial Advisors. Please consult with your Tax Advisor for more details.
- The borrower retains the title to the home.
- Heirs inherit the home.
- Home does NOT need to be free/clear.
- The borrower does not need to sell the home.
- No effect on Social Security or Medicare. (Ask us for details if you are on Medicaid.)
- The loan is repaid after ALL borrowers leave the home. (Provisions are included for travel and medical stays outside of the home.)
- You can NOW use a Reverse Mortgage to purchase a home. Call for details.
What are the Qualifications to Obtain a Reverse Mortgage?
- The youngest borrower must be at least 62 years of age (spouse can be younger).
- The home must be your primary residence.
- The home must be able to obtain an acceptable FHA appraisal.
- The borrower must pass a willingness and capacity test. Credit scores are not a factor but guidelines look at past performance in paying taxes/insurance/ HOA dues.
How Much Money Can I Obtain?
The following factors determine the amount of money a borrower can receive from a Reverse Mortgage:
- Age of youngest borrower.
- The appraised value of the home, or FHA limit of $822,375 (whichever is lower). On a purchase, it would be the purchase price or appraised value, whichever is lower.
- Current interest rate and program choice.
What is the Borrow's Responsibility?
- Maintain the home as the primary residence.
- Pay property taxes.
- Pay homeowner's dues (if applicable).
- Maintain home in good condition.
How Can I Receive My Funds?
- Lump Sum – must be used for fixed
- Tenure or Term Payment - adjustable only
- Line of Credit - adjustable only
- Combination - adjustable only
How Have Some of our Borrowers Used Their Reverse Mortgage Funds?
- Pay off a current mortgage.
- Pay off other debt.
- Home repairs.
- In-home care.
- Gift to children or grandchildren
- Charitable giving.
- Purchase a vacation home.
- Purchase a motor home.
- Purchase long-term care or life insurance
- Travel
The Reverse now offers a JUMBO product, typically for homes with a value of $1 million plus. Although this product is not FHA insured, it is still a non-recourse loan.
Please call for details.