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 - recieve 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.