What is a Reverse Mortgage?
Here’s How It Works:
- Qualifying homeowners can choose to receive tax-free payments from reverse mortgage lenders either on a monthly basis, in a lump sum, or as a line of credit.
- No repayments are required while a borrower lives in the home.
- Social Security and Medicare benefits are not affected.
- Reverse mortgage lenders recover the loan amount, plus interest when the home is sold (because owners choose to move, or pass away)
- When the loan is paid in full, all equity associated with the property will be distributed to your heirs.
Keep in Mind:
Do I Qualify for a Reverse Mortgage?
Does My Home Qualify For a Reverse Mortgage?
Examples of qualifying homes:
- Single Family One-Unit Residences
- 2-4 Unit Owner-Occupied Residences
Ask your lender if these residences qualify:
- Manufactured Homes
- Condominiums and
- Planned Unit Developments
How is the Loan Amount Determined?
The amount of the loan is based on:
- The age of the youngest borrower
- The appraised amount of the property
- No income or credit is required.
What Are My Reverse Mortgage Options?
HECM offers 4 draw options:
- Monthly income for a fixed term, or life
- Line of credit
- Lump sum
- Any combination of the above 3
For more information please use our Reverse Mortgage Home Value Wizard
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