Are you thinking about a reverse mortgage but don't know where to start?
First of all, what exactly is a Reverse Mortgage? A reverse mortgage, or HECM (Home Equity Conversion Mortgage), is a way to turn the equity in your home into TAX-FREE* cash without having to make any monthly mortgage payments. Instead of monthly payments, the loan is repaid in one lump sum when the last borrower leaves the home.
As part of the loan, the borrower is required to continue paying property taxes, insurance, HOA and maintain the home. According to the US Department of Housing and Urban Development, more than half a million households across the nation are using a HECM reverse mortgage insured through the Federal Housing Administration (FHA) that enables seniors to gain financial independence from their ever increasing living expenses.
Reverse Mortgage Benefits
Take advantage of some of these reverse mortgage benefits that increase your purchasing power and flexibility.
- No Monthly Mortgage Payments*
- Tax free cash from loan payments
- Increased discretionary cash flow
- Can sell YOUR home at any time
- No credit score requirements, but some income and credit qualification for property taxes is required.
Eligibility Requirements
- One borrower must be 62 years or older
- Purchased home is required to be your primary residence
- New property must be: single family home, 2-4 unit dwelling or FHA Approved condo
- Must have reverse mortgage counseling from a HUD approved counseling agency
- You must have an adequate down payment fro your new home or a gift from a family member
Here is a helpful video that does a fantastic job explaining the benefits of a reverse mortgage loan.
If this sounds like something you may be interested in, please let us know and we will get you in touch with a Reverse Mortgage Specialist who can go into more detail with you.
*This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situat
