A reverse mortgage, also known as the HECM (Home Equity Conversion Mortgage), is a federally insured loan that allows you to convert some of the equity in your home into tax-free cash! There is a number of ways to receive cash payments for the equity in your home. The reverse mortgage product “reverses” the mortgage process. For the monthly payment option, rather than making a monthly mortgage payment, you can now get a monthly tax-free cash payment back to you! This product is not just for those needing immediate cash, but is a solid estate planning tool. The goal is to help people remain in their homes and enhance their quality of life in retirement.

How do you qualify?

  • Must be 62 years old or older
  • Must own your own home or condo as your primary residence
  • Sufficient equity in the home (30% – 50% general rule of thumb)
  • Must qualify for enough money to pay off any existing mortgage balance

How much can you receive?
Three things determine how much you can receive:

  • Appraised value of your home
  • Age of the youngest borrower – the older you are the more money you can receive
  • Current interest rate

How can I get my funds?

  • Lump sum payment
  • Fixed monthly payments
  • Line of credit
  • Any combination of the above

Other benefits of a Reverse Mortgage

  • No monthly mortgage payments
  • No income or credit requirements…collateral based loan – based on value and equity in the home
  • Frees up a portion of home’s value that you can convert to tax-free cash
  • No restrictions on how cash is used
  • Proceeds do not affect your Social Security or Medicare benefits
  • You remain on title…your home continues as your asset
  • Loan does not come due until the home is sold or the last homeowner passes away.

Can I purchase a new home using a Reverse Mortgage? ….YES!

  • Purchase Reverse Mortgage is a Non-Recourse loan to purchase a home and make no monthly payments
  • The “unofficial” amount of money the industry will lend is ten years less your age. For example, if you are 65 years old you can qualify for a Purchase Reverse Mortgage up to 55% of value.
  • This product can help you leverage the existing equity in your home to buy a larger home with no monthly payments!

The reverse mortgage transaction process – If you are interested in learning more about a reverse mortgage and if it is right for you, just contact us. We can provide solid referrals from trustworthy lenders we have done business with for years. Click here for referral form.