More than 95% of reverse mortgages are Home Equity Conversion Mortgage (HECM) loans which are insured by the U.S. government. This unique loan option allows you to convert a portion of the equity in your home into tax-free funds, giving you greater financial flexibility and security for the future.
No monthly mortgage payments, Borrower retains full ownership of their home, The loan is repaid when the borrower ceases to occupy the home (sells home or passes away).
REQUIREMENTS
Must be 62 years of age, Live in home as their primary residence, Have sufficient equity in the home, Complete HUD-approved counseling and pass a financial assessment.
LOAN PROCEEDS CAN BE PAID IN SEVERAL WAYS:
Single lump-sum disbursement, Fixed monthly payments, A line of credit, A combination of one or all of the above options.
HOW MUCH WILL YOU QUALIFY FOR DEPENDS ON:
Age of the youngest borrower, Appraised value of the home, Current interest rates.
BORROWER RESPONSIBILITIES
Keep real estate taxes current, Maintain homeowner's insurance, Maintain home in good condition.
A reverse mortgage can be used to supplement retirement income, make home repairs or modifications, pay for medical or long-term costs, establish a line of credit for future use, and even purchase a new home. To learn more about how a reverse mortgage could benefit you, please contact me.
