Reverse Mortgages

A reverse mortgage is a unique type of home loan that allows a home owner to convert a portion of the equity in their home into cash. This loan may be ideal for a number of reasons. Whether you are looking for money to finance a new home improvement project, hoping to pay off a current mortgage or other bill, or just looking to supplement retirement income, a reverse mortgage allows older homeowners to convert part of the equity in their home into cash without having to sell their homes.

In a reverse mortgage, the equity that has built up in a home over years of home mortgage payments can be paid out to the homeowner. However, unlike traditional home equity loans, there is no required repayment until the borrower is not using the home as a principal residence any longer.

The Federal Housing Administration (FHA) requires a homeowner to be 62 years or older to qualify for a reverse mortgage. In addition, the homeowner must either own the home outright or have a low mortgage balance that can be paid off from the proceeds of the loan. These conditions are, of course, in addition to the requirement that the home be used as a primary residence.

While this loan sounds amazing, there are still some fears and concerns in regards to this reverse loan. Many borrowers worry that the lender will be able to take the home away if they outlive the loan. That is not the case. As long as you or one of the borrowers continues to live in the home and keep the taxes and insurance current, you do not need to repay the loan. Even afterwards, you can never owe more than the value of the home after you or your heirs sell the home.

If a reverse mortgage sounds like it could be the right option for you, give us a call toll free (866) 854-4242. You can also visit our reverse mortgage page.