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Mortgage > Reverse Mortgages Solutions to Senior Housing |
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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:
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 .
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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