REVERSE MORTGAGE LOAN

A reverse mortgage loan (Home Equity Conversion Mortgage or HECM) allows you the financial freedom to stay in your home without having to make a monthly mortgage payment. Borrowers remain responsible for property taxes, homeowners insurance, and property maintenance. As securing a financially comfortable retirement becomes increasingly difficult, more and more homeowners are using a reverse mortgage to strengthen their financial security while retaining ownership of their homes. Tax-free proceeds from a reverse mortgage loan can be used for any reason at all. Securing a reverse mortgage loan allows homeowners the ability to access a portion of the equity they have built up in their homes now.  

Reverse Mortgage Loan Basic Guidelines

  • All borrowers must be at least 62 years old

  • Loan approval may be possible even with lower credit scores and past bankruptcy or foreclosure

  • FHA approved condos only

  • Single, Multifamily (up to 4 units) and modular homes are eligible

  • Property must be the borrower's primary residence

  • Borrowers remain responsible for real estate taxes, required HOA fees, insurance, and maintaining the condition of the property 

Advantages of a Reverse Mortgage Loan

  • No monthly mortgage payment (borrowers remain responsible for property taxes, homeowners insurance, and home maintenance)

  • Tax-free proceeds from a reverse mortgage loan can be used for any reason at all: pay bills, improve your lifestyle, invest, help secure retirement etc.

  • Borrowers retain ownership of their home so long as they comply with the loan terms - Deed and title remain in the borrower's name (subject to lien on a property by lender for reverse mortgage loan)

  • Flexible access to funds - receive a lump sum payment at closing, monthly payment for a fixed term (term payment), monthly payment for life (tenure payment), or create a credit line that can be accessed as needed. These payment options can combined or changed after closing.

These materials are not from HUD or FHA and were not approved from HUD or a government agency.

call (914) 966-2489 to speak to a loan expert