A Reverse Mortgage is a mortgage that
allows a homeowner 62 or older to use the equity in your home to
receive cash while continuing to own and live in it.
Reverse Mortgages are different from conventional home equity loans:
No income or credit qualifications
No monthly or immediate repayments
Re-paid when the home is no longer the primary residence of the borrower(s)
Types of Reverse Mortgages:
FHA insured Home Equity Conversion Mortgage (HECM)
Fannie Mae Home Keeper
Proprietary programs (programs owned by private or public companies)
Click here to learn more about the Reverse Mortgage Products.
To become familiar with terms used in association with reverse mortgages visit our Reverse Mortgage Dictionary.
You may qualify if...
You are a homeowner 62 years old or older
Your home is your primary residence
You have enough proceeds to pay off any current mortgages or liens, if there are any
Your home meets HUD minimum property standards or can be brought up to their standards using the Reverse Mortgage proceeds
funds for estate, financial, or long-term care planning
to move to a smaller home, purchase a 2nd home or investment property without mortgage payments
cash to pay bills, fulfill dreams, or meet goals
Tom's
health was failing and his family wanted him to stay in his home rather
than move to a nursing home. To afford the necessary home health care,
a Reverse Mortgage was done.
Consider the Advantages
Retain ownership of home
Access immediatecash - generally not considered taxable income
Receive cash to be used for any purpose
Receive a tenure or term monthly payment, a line of credit, a lump sum or a combination of these to meet your needs
Ease financial worries and pressures
Stay in home longer
Maintain or raise current standard of living
Earl and Ruth did a Reverse Mortgage to be prepared for an emergency if something were to happen to one of them.
Instead of making payments, borrowers receive money in monthly payments, line of credit, lump sum, or a combination of these.
The HECM is a government insured program.
The loan amount depends on the age of the borrower(s), appraised value of the home or
the mortgage lending limits (whichever is less), the current interest rate, and the program chosen.
Loan origination and closing costs are financed by the loan.
Social Security and Medicare are not affected and generally not SSI or other public benefits. (consult with legal services for your situation)
Available balance on line of credit grows.
No personal liability; borrowers or their estate are never required to pay more than the value of the home.
Equity remaining after the payment of the loan is the borrowers or their heirs.
In the case of joint borrowers, when one of them dies, the
mortgage stays in place as long as the other borrower has the home as
their primary residence.
Borrowers are required to receive free third-party counseling to help them determine if a Reverse Mortgage is right for them.
Frank
and Emma were a vibrant 90 and 86 year old couple. They found that each
month they were short money to even buy milk. Their son-in-law and
daughter assisted them in obtaining the Reverse Mortgage. They are so
pleased that they now can live more comfortably. They used the proceeds
to receive a monthly payments to supplement their Social Security. They
also took out a lump sum to fix up their home and left enough in their
line of credit to use as future needs arise.
Minnesota ResidentsCall Us to learn how to receive a FREE copy of the reverse mortgage guide, Understanding Reverse Mortgages, a book written in a simple format, providing the necessary information and knowledge to comprehend the basics of Reverse Mortgages.
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Prestige Mortgage LLC The
ExpertsExcelling In Serviceproviding Security, Independence, Dignity,
and Control by helping senior
homeowners over 62 convert the equity of their home
into cash,
Prestige Mortgage LLC
