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Reverse Mortgages for Seniors
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No Income, No Asset, No Credit Check, No Up-Front Cash, No Monthly Payment, Reverse Mortgage Programs
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Reverse mortgages are limited to individuals 62 years of age, or older, who own their home free and clear of debt, or only have a small mortgage balance remaining. (Note: If Reverse Mortgage rates are low, then the existing mortgage balance can be higher. If Reverse Mortgage rates are high, then the existing mortgage balance must be small.)
The mortgage does not have to be repaid until the borrower is no longer living in the home. The loan does not pass to heirs. Neither the borrower, nor their heirs, can ever owe more than the value of the property when the loan comes due. Any remaining equity in excess of the mortgage still belongs to the borrower or their heirs.
The proceeds of the reverse mortgage can be used any way the borrower chooses.
These mortgages are determined by the value of the home, interest rates, and the age of the borrower. Lower interest rates equate to more cash for the borrower. Also, the older the borrowers, the more cash a Reverse Mortgage can generate. There are maximum mortgage limits, by county, under the FHA insured program. However, there are Reverse Mortgages available for amounts over the FHA maximums, including jumbo Reverse Mortgages, from private companies.
Proceeds from the loan can be received in a lump sum, monthly payments, increasing line of credit (most popular), or a combination of these methods.
Qualifying primary residence properties include one-to-four-family (so long as one unit is owner occupied), condominiums, Planned Unit Development (PUD), and mobile homes (manufactured) on permanent foundations.
There are different programs offered: FHA/HUD Insured Home Equity Conversion Mortgage (HECM); the Fannie Mae HomeKeeper (HK); and Financial Freedom Senior Funding Corporation's Cash Account (CA). Jumbo Reverse Mortgages are also available.
Words of CAUTION:
(1) Most lenders have discontinued the "equity sharing" or "appreciation sharing" features of Reverse Mortgages. Borrowers should avoid these features.
(2) An educated borrower makes for a satisfied customer.
(3) Contact AARP on (800)209-8085 or www.aarp.org/revmort
(4) Contact the National Reverse Mortgage Lenders Association on
(202)939-1760 or www.reversemortgage.org
(5) To get your required HUD CERTIFICATE contact a HUD approved non-profit counseling agency.
Contact me for a confidential review of your particular situation.
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