Reverse Mortgages

In a reverse mortgage loan (sometimes called a home equity conversion loan, or HECM for short) borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution pays out funds determined by your home equity amount; you receive a lump sum, a payment every month or a line of credit. Paying back your loan is not required until after the homeowner sells the property, moves (such as to a care facility) or dies. You or representative of your estate is obligated to pay back the reverse mortgage funds, interest accrued, and finance fees when your home is sold, or you can no longer use it as your primary residence.

Reverse Purchase

The HECM for Purchase Program is a Federal Housing Administration (FHA) insured home loan. It allows individuals age 62+ to buy a primary residence using a reverse mortgage. Most borrowers need to plan on bringing 50% to cover down payment and closing costs.  (Less for the older borrowers)

Are you Eligible?

The requirements of a reverse mortgage loan often include being 62 or older, using the home as your primary living place, and having a low remaining mortgage balance or having paid it off.

Reverse mortgages can be great for retired homeowners or those who are no longer bringing home a paycheck but need to add to their limited income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't affect Social Security or Medicare benefits. The lending institution isn't able to take the property away if you outlive your loan nor can you be forced to sell your home to pay off your loan amount even when the loan balance grows to exceed property value. Contact us at (888) 496-8704 to explore your reverse mortgage options.

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