reverse mortgage

What is a reverse mortgage?:

A reverse mortgage is a federally insured loan program that allows you, as a senior, to convert the equity you have built up in your home into monthly income, or lump-sum cash. This money can be used any way you wish!!!!! The money received is TAX FREE and NO REPAYMENT is required as long as you reside in the home and maintain it as your primary residence.

Think of it like this, you have worked all your life to pay for and maintain your home. You can now use some of the equity you have built up in this asset to enjoy your golden retirement years and improve your lifestyle.

The money received from a reverse mortgage is not considered income and WILL NOT affect your Social Security or Medicare payments that you receive. (If you receive, SSI or Medicaid, there are pertinent rules that apply)

How much money can I get?

The loan amount available is based on your age, the value of your home, the current interest rate and the reverse mortgage plan you choose. The older you are, the more money you can receive! The money can be used for whatever you wish and can be taken in a lump sum, as monthly payments to supplement income or in a combination of both.

How do I qualify?

To obtain a reverse mortgage, all parties on the title must be 62 years of age or older and you must occupy the home as your primary residence. There are no monthly payments, so therefore you have no income qualification requirements. The basis for the loan is the value of your home and the equity you have in it, so there is also no credit criteria to be met.

When is repayment required?

No repayment is required as long as one spouse is living in the house, it is their primary residence and they are on the title to the property. The property must be insured and your property taxes paid current. Repayment of this loan is required if all owners cease to occupy the property.

What happens upon my death?

Upon your death the property goes to your estate and your heirs get to decide if they want to keep the house and pay off the reverse mortgage, or sell it and pay off the loan with the proceeds of the sale with all remaining profit going to them. If, for some reason your house value is worth less than the loan amount, the property could be deeded back to FHA. NO debt could ever be passed to your children or heirs from a Reverse Mortgage.

How can I find out more about this product?:

You can ask additional questions, look at different reverse mortgage options and receive a free evaluation based on your specific situation by calling 1-800-300-8904 or (409) 883-3563 and asking for a Reverse Mortgage Specialist.