How do I qualify?
It's easy. You must be age 62+ and own a home with some equity. You don't need any income to qualify. If you currently have a mortgage, that's okay - it can be paid off with a Reverse Mortgage. You can even have bad credit, as long as there are no current government liens against your home.
What types of loans are available?
The most common type is called a Home Equity Conversion Mortgage (HECM). A HECM loan is insured by the federal government and utilized by borrowers more than 90% of the time.
We have one of the most diverse menus of Reverse Mortgage products available in the market. The best way to find out which of our many products best fits your scenario is to contact us for a customized quote!
How can I use the money?
The money from your Reverse Mortgage can be used for any purpose, from making ends meet to living your retirement dreams.
· Living expenses
· Travel
· Paying off debts, including credit cards
· Health care or long-term care
· Education-keep learning for life!
· Home repairs and remodeling
· Hobbies
· Starting a part-time business
· Easing the financial burden on your children
Will I lose my home?
With a HECM loan, regulated and insured by the Federal Housing Administration, you are still the homeowner and you can stay in your home for as long as you wish provided taxes and insurance are paid. By law, you can't be forced to sell or move. You maintain the title to your home. No payments are due on the Reverse Mortgage until you no longer live in the home.
What if I want to leave our home to the kids?
It's your home. You can still leave it to your children, or to anyone you choose. Your heirs can pay off the loan any number of ways.
· Sell the house;
· Refinance the debt; or
· Use other funds to pay off the Reverse Mortgage.
If no monthly payments are required, when is my Reverse Mortgage paid back?
Your loan is paid back when you move out of your home, sell it, or all people on the title have passed away.
How much cash can I get?
The amount depends on where you live, your age and the value of your home.
What do the experts say about this program?
Many financial counselors, senior advocates and published reports suggest that a Reverse Mortgage can be a smart way to secure your financial future during retirement.
Are there any costs?
As with any loan, there are closing and other costs, all of which can be paid with the money generated by your Reverse Mortgage.
Will I have to pay any taxes?
In general, the IRS does not consider proceeds from a Reverse Mortgage to be taxable income. You are still responsible for property taxes, homeowner's insurance and for all home upkeep and maintenance. Please consult a tax professional.
Will this loan affect my Social Security or Medicare benefits?
HECM payments do not affect your Social Security or Medicare benefits because those benefits are not based on the assets of the recipient. However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits. If you do not spend HECM advances in the month received, then such funds are considered part of your liquid resources and may adversely affect your eligibility for SSI. Regulations vary for state-administered programs such as Medicaid, Aid for Dependent Children (AFDC), and food stamps. Therefore, we suggest that you consult a benefits specialist at your local Area Agency on Aging or the local offices for these programs to determine how HECM payments may affect your particular situation.
