There are Very Few Requirements in Obtaining a Reverse Mortgage:
- Both spouses must be at least 62 years of age or older
- The home must be your primary residence
- The home either needs to be paid in full, or have a mortgage balance that can be paid off with the proceeds of the Reverse Mortgage
- Unlike traditional mortgages, the approval process has nothing to do with your income or credit rating
There are Many Program Benefits:
- There is no repayment on the mortgage as long as you live in your home
- The proceeds can be used for any reason that you see fit
- You retain ownership to your home, not the Lender
- The proceeds from a Reverse Mortgage are not taxable
- The FHA Reverse Mortgage is a Federally insured program
- After your estate repays the lender, the remaining equity is paid to your heirs
- There are a number of flexible payment options available to you
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The Amount That You Can Receive Depends on 3 Factors:
- The interest rate (The lower the rate, the greater the proceeds to you)
- The age of the youngest borrower (The higher the age, the greater the proceeds to you)
- The appraised value of the home (The higher the appraised value, the greater the proceeds to you)
The Loan is Repaid When:
- The last borrower passes away
- The home is no longer the borrowers primary residence
- The home is sold
- The borrowers transfer title of the property to someone else
Repayment Options:
- Proceeds from the sale of the home: The remaining equity will be distributed to your heirs or your estate
- Refinance the Home: If your family or estate wish to keep the home, a conventional mortgage can be used for repayment and any additional equity remains in the control of your family members or the estate
- Life Insurance Proceeds
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