Reverse Mortgages
Reverse Mortgages
HOME / LOAN PRODUCTS / REVERSE MORTGAGES
Stop making mortgage payments and realize income from the equity you have accumulated in your property with a Reverse Mortgage.
Reverse Mortgage Snapshot
Reverse Mortgage Mechanics
*You must remain current on property taxes, hazard insurance, homeowner’s association dues, any other applicable fees, and you must be able to maintain the property.
Reverse Mortgage Uses
- Use your home equity to cover unexpected medical or other expenses
- Use your home equity to supplement your monthly expenses when stock market conditions may not be opportune for you to withdraw investment income or principal
- Use your home equity to make meaningful contributions to your children or grandchildren
Reverse Mortgage Benefits
- No Stress of Monthly Payments: Access your home equity without putting yourself under the financial stress associated with a typical cash-out refinance or home equity line of credit
- Line of Credit or Lump Sum: Access your equity in the form of a lump sum or in a line of credit on which you can draw
- Non-recourse Loan: Your loan only has to be repaid when your property is sold, you vacate your property, or you pass away
- No Debt Assigned to Your Heirs: In the event of your passing, your family is given a period of time to pay off your loan or sell your home. In addition, your family members/heirs are given the opportunity to buy your property for 95% of the appraised value, even if the house is worth less than the amount owed
- Age in Place: Avoid being forced out of your home for financial reasons before you want to leave
Reverse Mortgage Eligibility
- No FICO qualification
- No traditional debt-to-income qualification (however, borrowers must demonstrate a willingness and capacity to pay basic obligations such as property taxes, hazard insurance etc.)
- Borrowers must be 62 years of age or older
- Borrowers must qualify to pay taxes, insurance, or HOA if applicable
- You can own your home outright, or have a low balance on your mortgage that can be paid off at closing with proceeds from the reverse loan
- The borrower must have financial resources to pay ongoing property taxes, HOA dues and other associated property fees
- Before obtaining this type of loan, all borrowers and non-borrowing spouses must receive independent counseling
Reverse Mortgage Loan Options
The types of Reverse Mortgages include:
Fixed/Adjustable Interest Rate Loans – Fixed interest rate and an adjustable interest rate programs available (a fixed interest rate is only available with the lump sum payment option)
Purchase Loans – Enables a borrower to purchase a principal residence while (1) funding less than the purchase price with their own cash, AND (2) having no mortgage payment after closing.
Refinance Loans– Enables a borrower to convert one HECM loan into another HECM loan, potentially to access more cash or lock in a lower interest rate.
Lump Sum/Credit Line/Monthly Installment Funding – Receive money as a line of credit, monthly installments, lump sum, or in the form of a retirement of an existing mortgage.
Reverse Mortgages
HOME / LOAN PRODUCTS / REVERSE MORTGAGES
Stop making mortgage payments and realize income from the equity you have accumulated in your property with a Reverse Mortgage.
Reverse Mortgage Snapshot
Reverse Mortgage Mechanics
*You must remain current on property taxes, hazard insurance, homeowner’s association dues, any other applicable fees, and you must be able to maintain the property.
Reverse Mortgage Uses
- Use your home equity to cover unexpected medical or other expenses
- Use your home equity to supplement your monthly expenses when stock market conditions may not be opportune for you to withdraw investment income or principal
- Use your home equity to make meaningful contributions to your children or grandchildren
Reverse Mortgage Benefits
- No Stress of Monthly Payments: Access your home equity without putting yourself under the financial stress associated with a typical cash-out refinance or home equity line of credit
- Line of Credit or Lump Sum: Access your equity in the form of a lump sum or in a line of credit on which you can draw
- Non-recourse Loan: Your loan only has to be repaid when your property is sold, you vacate your property, or you pass away
- No Debt Assigned to Your Heirs: In the event of your passing, your family is given a period of time to pay off your loan or sell your home. In addition, your family members/heirs are given the opportunity to buy your property for 95% of the appraised value, even if the house is worth less than the amount owed
- Age in Place: Avoid being forced out of your home for financial reasons before you want to leave
Reverse Mortgage Eligibility
- No FICO qualification
- No traditional debt-to-income qualification (however, borrowers must demonstrate a willingness and capacity to pay basic obligations such as property taxes, hazard insurance etc.)
- Borrowers must be 62 years of age or older
- Borrowers must qualify to pay taxes, insurance, or HOA if applicable
- You can own your home outright, or have a low balance on your mortgage that can be paid off at closing with proceeds from the reverse loan
- The borrower must have financial resources to pay ongoing property taxes, HOA dues and other associated property fees
- Before obtaining this type of loan, all borrowers and non-borrowing spouses must receive independent counseling
Reverse Mortgage Loan Options
The types of Reverse Mortgages include:
Fixed/Adjustable Interest Rate Loans – Fixed interest rate and an adjustable interest rate programs available (a fixed interest rate is only available with the lump sum payment option)
Purchase Loans – Enables a borrower to purchase a principal residence while (1) funding less than the purchase price with their own cash, AND (2) having no mortgage payment after closing.
Refinance Loans– Enables a borrower to convert one HECM loan into another HECM loan, potentially to access more cash or lock in a lower interest rate.
Lump Sum/Credit Line/Monthly Installment Funding – Receive money as a line of credit, monthly installments, lump sum, or in the form of a retirement of an existing mortgage.