Let me begin by saying, I am not a mortgage specialist and I advise you to consult with one for more information. If you want to contact me, I'll be happy to refer you to one. Also, consider speaking with the appropriate experts in the area in which you may have other questions such as, income taxes, property taxes, homeowner's insurance, etc.
So, What is a Reverse Mortgage?
Allows homeowners age 62 and older to convert part of the equity in their primary residence into cash and have No Monthly Debt. There is No Income or Credit Score Requirements. Cash received from a Reverse Mortgage is tax-free and can be used for any purpose. Homeowners retain ownership and connot be forced to leave their home when all loan terms are being met. The loan, including accrued fees, is due when the home is vacated due to sale, moving, or death of the owners. Neither the owners nor their heirs are personally liable for more than the value of the home and a Reverse Mortgage can be used to purchase a primary home.
Seven Things Seniors Should Know About Reverse Mortgages
1. How Do I Qualify?
- be at least 62 years old
- occupy the property as your primary residence
- pay off any existing liens from proceeds at settlement
- attend an informal session with a housing counselor, usually by telephone
- pay off existing debt - be free from monthly debt payments
- cash for medical care, travel, home improvements, education, help family members
- provide living expenses when savings or social security income are insufficient
- use the cash in any way you want
- allows borrowers to remain independent
- The loan becomes due when you vacate the property due to moving, the sale of the house, or the death of the borrowers
- you or your heirs may settle the loan by selling the property or refinancing it
- Factors that determine the loan are:
the value of your home
current interest rates for the Reverse Mortgage Program
current loan principal limits
- The debt does not pass to heirs
- The lender has no claim on assets other than the then current market value of the home upon loan maturity
- Guaranteed by the federal government or the proprietary lender
- Payment options include:
lump sum payment
line of credit - leave in an account for use as you need it
tenure plan - receive a certain amount monthly throughout your life
term plan - receive a certain amount over a specified number of years
- With a Reverse Mortgage, you must:
occupy the home as your primary residence
pay homeowner's insurance
pay property taxes
maintain your home
If you fulfill these obligations, you can Never be forced from your home.
Associate Broker, GRI
706-633-0644 Cell (Call or Text)