What is a reverse mortgage? Reverse mortgages enable homeowners to convert a portion of their home's value into useable cash. A common misconception is that someday the home will be "taken over" by a bank or by the government. This is totally UNTRUE. The homeowners never pay one cent in mortgage payments as long as they continue to pay real-estate taxes and homeowner's insurance and do not allow their property to fall into disrepair. The home can be sold by the homeowners at any time. However, it would probably be economically unwise to obtain a reverse mortgage (except in the case of a financial emergency) if planning to move or sell within 3-5 years. The homeowners can be paid a portion of their equity in one of three different ways (or any combination): in a lump sum as monthly income for life or a fixed number of years as a line of credit. Are reverse mortgages only for the "needy"? Reverse Mortgages are NOT solely for the needy. They are used by anyone who wishes to convert equity value in their home to cash, a line of credit or monthly income. The FHA-HUD government insured program was originally designed to provide revenue for senior homeowners who needed additional income to remain in their homes. However, everyone over 62 whose home has developed substantial "phantom equity" due to inflation, those who own their homes free and clear, and seniors who have a relatively small mortgage, can now convert a portion of their home's equity into cash, a line of credit, or a lifetime income. No repayment is required for as long as you continue to live in your home! In short, Reverse Mortgages provide senior homeowners a safe way to access the equity in their homes, enabling them to enjoy their retirement years with greater financial comfort. How much money can I get? There are no credit or income requirements. The amount of money you are entitled to is based upon the age of the younger homeowner (both must be 62 or older), the current market value of your home (up to you county's FHA lending limit), and the current interest rate. The older you are the more you can get, the more valuable your property (up to the lending limit) the more you can get, and the lower the current interest rate the more you can get. To find out how much you can get, complete the analysis form, or call us toll-free at 1-800-998-2523. What are the benefits of a reverse mortgage? A benefit that may surprise some people is that the debt can never exceed the value of the home. That means that if today's lofty housing prices start to decline, your heirs won't be held responsible for paying back a larger amount, and have to write a check themselves. Accepting the money in no way alters the ownership of the home. The mortgage runs with the property and is not a personal debt. To repeat, no repayment is required for as long as you continue to live in your home! What can I use the money for? This is your money to use for whatever you want, be it home repairs, a vacation, to pay medical bills, credit card debt or to supplement your monthly social security check. Do I have to repay the reverse mortgage? As long as you live in your home you will not have to repay reverse mortgage. Once you no longer live in your home or if you sell your home, then you or your estate will repay the cash you received from the reverse mortgage, plus interest and closing costs. In no case will your heirs ever have to come up with money out of their pocket to repay a reverse mortgage should the total loan ever exceed the value of the property (in the unlikely event of a major real-estate deflation). Can the lender take my home away? NO! You cannot outlive the loan agreement. You must pay for your homeowners insurance policy and your real-estate taxes yourself (since there is no monthly payment in which to "escrow" these expenses). You cannot be forced to sell your home to pay off the mortgage loan (you can never be in arrears because there is no payment required). HUD's Federal Housing Administration guarantees that you will receive all the payments that are owed to you. Will I still have an estate that I can leave to my heirs? When your home no longer is your primary residence your estate will repay the reverse mortgage. Remaining equity in your home goes to your heirs. In most cases, inherited property is sold to permit distribution of inherited assets. In this case, the reverse mortgage is paid as a debit to the sellers when the sale closes, as is any mortgage. There is no requirement that a reverse mortgaged home must be sold upon the death of the owners. The mortgage can be paid from other funds or the home might be refinanced if the heirs wish to own it. Why should I get a reverse mortgage and not a bank home loan? With a traditional second mortgage, or a home equity line of credit, you must have sufficient income to qualify for the loan. With an FHA-insured HUD Reverse Mortgage you cannot be foreclosed or forced to leave your home because you missed a mortgage payment (no payments are required). Do I qualify for a reverse mortgage? You must be age 62 or older. Making mortgage payments? A RM may put a stop to these! The property must be your principal residence. The property must be a single-family home, a one-to-four unit dwelling with one unit occupied by the applicant, a manufactured home (mobile home), or a unit in condominiums or Planned Unit Developments. A toll-free phone call to us will answer other questions: 1-800-998-2523. Counseling available to homeowners and legal representatives The Reverse Mortgage is a new concept for many seniors and you need to fully understand this important resource. In fact, the HECM program requires a counseling interview of homeowner/borrower(s) prior to our processing your reverse mortgage application. This can be accomplished through Hud-approved counseling agencies or through the American Association of Retired Persons (AARP) Foundation Counseling network. For information on free Reverse Mortgage counseling, call us at 1-800-998-2523. Where can I get more information and expert service? NRMLA (The National Reverse Mortgage Lenders Association) provides some helpful booklets which are available for downloading on this page. You can also Download a copy of AARP's booklet titled "Home Made Money". This will supply you with the fundamentals of reverse mortgages and we welcome a call if you have questions. If you call 1-800-998-2523 toll-free we will provide you with details such as roughly how much you will receive, and how long it should take. A trained Reverse Mortgage Specialist can arrange for service in your vicinity, including appraisal, inspections (when indicated), counseling sources and confidential paperwork done in your own home. For more general information online pertaining to reverse mortgages, Click here.