Kevin A. Guttman, CRMP
More than 95% of reverse mortgages are Home Equity Conversion Mortgage (HECM) loans which are insured by the FHA.
This special financing for senior homeowners 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.
BENEFITS
- No mandatory 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 installments
- A line of credit that earns interest
- A combination of 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.
