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"Helping Secure Your Best Retirement"
Reverse mortgages are a type of loan that allows homeowners to convert a portion of the equity in their homes into cash without having to sell their homes or make monthly mortgage payments. We will answer some common questions about reverse mortgages to help you better understand if a reverse mortgage will help benefit you financially.
A reverse mortgage is a loan that enables homeowners who are 62 years of age or older to convert a portion of the equity in their homes into money. The loan is repaid when the homeowner sells the home, permanently moves out, or passes away. The loan amount is usually based on the age of the borrower, the value of the home, and available interest rates.
Unlike traditional mortgages, reverse mortgages do not require the borrower to make monthly payments. Instead, the interest on the loan is added to the loan balance each month and the total amount owed increases over time. When the borrower sells, moves out or passes away the loan becomes due. The sale of the home is what pays back the reverse mortgage, the homeowner or it’s heirs will never owe more than the home is worth. Homeowner is still responsible for paying property taxes and homeowners insurance while they live in the home.
To qualify for a reverse mortgage, you must be 62 years of age or older and have significant equity in your home. You must also live in the home as your primary residence. In addition, you must receive counseling from a HUD-approved counseling agency before you can apply for a reverse mortgage.
The amount of equity that you must have to qualify for a reverse mortgage depends on several factors, including your age, the value of your home, and the interest rates. Generally, the older you are and the more equity you have in your home, the more money you can receive from a reverse mortgage.
To qualify for a reverse mortgage, your home must meet certain eligibility requirements. The home must be a single-family residence, a multi-family residence (up to 4 units), or an approved condominium or manufactured home.
The home must also meet minimum property standards set by the Federal Housing Administration (FHA). These standards ensure that the home is safe, habitable, and structurally sound. The standards include requirements for the roof, plumbing, electrical, heating, and cooling systems, as well as any other structural components.
If your home does not meet the minimum property standards, you may be required to make repairs or improvements before you can qualify for a reverse mortgage.
The amount of money that you can receive from a reverse mortgage depends on several factors, including your age, the value of your home, and the interest rates. Generally, the older you are and the more equity you have in your home, the more money you can receive from a reverse mortgage.
The maximum loan amount varies depending on the type of loan, but the actual amount that you can receive will depend on your individual circumstances. You can receive the money from a reverse mortgage as a lump sum, a line of credit, or a series of monthly payments.
It is important to remember that the loan must be repaid when you sell the home, permanently move out, or pass away. If you choose to receive the money as monthly payments, the payments will continue until the loan is repaid or until you pass away.
Let us know and one of our lending professionals will be happy to answer any of your questions.
Personal NMLS#126017
Company NMLS# 1842513
Reverse Mortgage Northwest
19324 69th Place West #7
Lynnwood, WA 98036
These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners. For information directly from HUD/FHA, visit https://www.hud.gov/guidance For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/ For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS