All About Reverse Mortgages
Learn more about reverse mortgages, for those 62 and over!
About Reverse Mortgages
- Reverse Mortgages can be used to refinance or purchase a primary residence.
- The Reverse mortgage must pay off any existing mortgage(s) on your property.
- You retain the Title & Ownership of the property.
- Payments can be made, but no monthly mortgage payment is required.
- Can convert available home equity into a line of credit that can grow, term or life payments or a lump sum drawl at closing.
- Proceeds from the loan can be set aside to pay future property taxes and homeowners insurance.
- You decide to sell your home at anytime, or pay off the loan with no prepayment penalty.
- You must continue to maintain your home and stay current on property taxes, homeowners insurance & any association fees.
Who's Eligible to Apply
- The primary borrower must be 62 years of age, a non-borrowing spouse maybe younger.
- The home must meet FHA, HUD or Jumbo guidelines.
- You must meet the financial assessment requirements.
- You must complete HUD Counseling.
- You must have sufficient home equity.
Types of Reverse Mortgages
Reverse Mortgages for Refinancing
The Home Equity Conversion Mortgage is available for homeowners wanting to pay off an existing mortgage(s) and convert available equity into cash, payments or a reverse mortgage line of credit. The program is avaible in a fixed or variable rate. Your home must be a primary residence; single family, 1 to four unit attached home, townhouse, approved condominium or a HUD approved manufactured home.
Reverse Mortgages for Purchase
Designed to help eligible borrowers purchase a primary residence with a single cash down payment and funds from a reverse mortgage loan. The home you wish to purchase must be your primary residence. You can a single family, 1 to 4 unit attached home, townhouse or a approved condominium. Reverse mortgages for purchase only cover a percent of the homes purchase price. The amount you can receive from a the reverse mortgage is based on the FHA Mortgage Limit, the properties appraised value, the interest rate, the age of the youngest borrower or non-borrowing spouse. The portion of the purchase price that the reverse mortgage does not cover is paid in one down payment, with funds from the sale of a previous home or other qualified savings.
JUMBO Reverse Mortgages
Designed for high value properties that may not meet FHA or HUD guidelines. This is a Fixed rate program for refinancing or purchasing a primary residence. Please contact us for details about JUMBO Reverse Mortgages, call (561) 203-6772.
Loan Disbursement Options
Fixed rate options:
- Lump Sum – Immediate disbursement of some or all loan proceeds
Adjustable rate options:
- Lump Sum – Immediate disbursement of some or all loan proceeds
- Line of Credit – Access the equity in your home at your convenience
- Monthly Payment – Get a monthly payment for a set term or for life
Disbursements that may be required..
- Mortgage Payoff – loan proceeds used to payoff any existing mortgage
- Life Expectancy Set-Aside – loan proceeds used to pay future property taxes and homeowners insurance if the finance assessment requirement isn’t met.
Important: (1)Loan proceeds are not taxable as income; consult your tax advisor. (2) If you qualify and your loan is approved, a Reverse Mortgage must pay off your existing mortgage(s). With a Reverse Mortgage, no monthly mortgage payment is required. Borrowers are responsible for paying property taxes and homeowner’s insurance. Borrowers must occupy home as primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable when the last borrower, dies, sells the home, permanently moves out, defaults on taxes and insurance payments, or does not comply with the loan terms.
Information About Reverse Mortgages