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With a reverse
mortgage, you borrow your own equity - and receive
monthly payments, a line of credit, a lump sum payment
or combination of all three. Over time, the loan
balance gets larger and equity gets smaller.
Repayment is required when the home is sold or is no
longer your principal/primary residence.
For many older
borrowers, a reverse mortgage is the most effective way
to convert home equity into money that you can use as
you wish. The benefits are numerous:
You continue to
live in and own your home
-
You pay no
income taxes on the cash advance
-
You can receive
an immediate cash advance in addition to monthly
income
Borrowers with a
reverse mortgage have responsibilities similar to those
associated with a traditional mortgage: paying property
taxes, keeping adequate property insurance up to date,
and maintaining the home.
Program
Advantages:
Disbursement
Options - Select how you wish to receive
disbursements: fixed monthly payments, a line of credit,
a lump sum cash advance, or a combination of the
plans.
Flexibility - You can adjust the
payment plan as your circumstances change.
Prepayment - Repay the loan at
anytime, without penalty.
Non-Recourse - The borrower or
the heirs have no personal liability for the repayment
of the loan. The loan is secured solely by the
home.
Security - You can feel
comfortable that no loan payments are required as long
as you occupy the property.
For more information
on our reverse mortgages, Contact Us .
Frequently Asked Questions about Reverse
Mortgages:
Am I
qualified for a reverse mortgage if I currently have an
existing loan on my home?
Yes. But the
existing loan must be paid off prior to or at the time
of settlement of the reverse mortgage. Quite often
the reverse mortgage is used to payoff an existing
loan.
What if my
spouse is under 62?
Unfortunately, the
younger spouse is not eligible to participate in the
reverse mortgage program. All individuals on the
loan must be age 62 or older.
To avoid
probate, my child and I hold title to the property in
joint tenancy. Do I qualify?
Yes, if the child is
age 62 or older and occupies the home. Otherwise
the child would have to be taken off the title prior to
settlement.
My property
is held in a living trust. Do I
qualify?
Yes, as long as you
are the primary trustee and are qualified by
age.
Are mobile
homes eligible?
Yes, if they meet
manufactured leasehold guidelines. See your
Reverse Mortgage Specialist for details.
My spouse is
permanently in a nursing home. Can we
participate?
Yes. The
requirement is that one owner must occupy the property
as a principal residence.
Does the IRS
consider the monthly advances from the reverse mortgage
income?
No. The
monthly advances are actually loan
disbursements.
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