What is a Reverse Mortgage?

The Reverse Mortgage is the only national program to the 62 yr-old homeowner, or older, that provides access to part of the home equity without a monthly payment and the money is tax-free (check with your tax adviser). There are no income or credit requirements to qualify.

What’s expected of me?

You need to pay the property taxes, pay the hazard insurance and/or the association dues, if you have any and maintain the property

Will I lose title to my property?

No, you retain the ownership rights just as you have now.

Can I have title to my property in a Living Trust?

Yes, a Revocable Living Trust is allowed as long as you are the primary beneficiary and the trust has the right to borrow against the property.

Can I still do a reverse mortgage if I have a current mortgage?

Yes, but it is required to be paid off by the reverse mortgage proceeds and if it is not sufficient to do that, you will need to provide a certified check for the balance.

I’ve had a bankruptcy; can I still get a reverse mortgage?

Yes, if it has been discharged or if you pay it off with the proceeds from your reverse mortgage. There is no waiting time limit.

When does the Reverse Mortgage need to be paid off?

When you no longer live in your home, repayment is required.

What’s the down side of a reverse mortgage?

You are spending all or part of your heirs’ inheritance, depending on when the reverse mortgage is paid off. It is possible that if you live to a ripe old age there could be no equity remaining in your home when the balance is due and payable. You get to live in your home with no payment, even when the reverse mortgage balance exceeds the property value.

Could my heirs receive an inheritance?

Yes, if there is equity remaining when the reverse mortgage is paid off. You will be provided with an Amortization Schedule so you can see what the estimated reverse mortgage balance is on a yearly basis.

What happens if the reverse mortgage balance is more than the property value at the time the balance is required to be paid?

At this time, all reverse mortgages are non-recourse loans; which means that the balance can never exceed the property value. There is no risk or liability for you or your heirs.

What’s a Counseling Certificate?

A Reverse Mortgage Counseling Certificate is required by all reverse mortgage programs. FHA and lender wants to make sure that you are not getting into something you don’t understand. You will be given a counseling certificate; which will need to be part of your reverse mortgage application. No lender can order any services until your counseling certificate is received.

How do I find a certified reverse mortgage counselor?

Your loan officer will assist you or go to this website for an FHA counselor: http://www.hud.gov/offices/hsg/sfh/hecm/hecmlist.cfm
NOTE: non-FHA reverse mortgages typically require a different certificate and will be arranged by the lender you go with.

What options do I have with my reverse mortgage proceeds?

You have four options:

1. All Cash
2. Tax-Free Monthly Income
3. Credit Line, you can draw against anytime you want, with no extra fees and it grows tax-free.

A combination of all three, cash, income and credit line

Following a federally mandated three-day-right of rescission, which is the three days after you sign your final closing documents, your loan will be funded and you will receive the distribution option you have requested. Your money will come to you in the form of a check or electronically deposited into the checking or savings account of your choice. All distributions become part of your reverse mortgage balance.

How do I apply for my reverse mortgage?

Go to the left side of your screen and click on Custom Analysis and complete the information. The loan officer we will refer to you will take care of the rest from start to finish, just call, email us and we’ll have one of our top notch loan officers contact you. He will need the following:

• A copy of your driver’s license or picture ID
• A copy of your social security card
• A copy of your Homeowners Insurance Policy Declaration Page
• A copy of your Mortgage Statement
• If you own a condominium he will need the contact information for the holder of the Master Insurance Policy.
• If you own a condominium he will need to know the contact person for the management company if your project is not on the FHA approved list so that the necessary information is obtained to get an approval on your unit.
• If you’re property description in in Metes and Bounds a copy of a survey of your property will be needed.

What does T.L.O.M.T.D. mean?

The Loan Officer Makes The Difference

How do I know if a Reverse Mortgage is for me?

A reverse mortgage is NOT for everyone; it’s for those people who want or need the money. If you can afford to borrow the money and make the payments, that is a better way to go.

If you want to get a portion of the equity out of your home and you don’t want to make payments, the reverse mortgage is for you.

How long does it take to get my money?

After the lender gets your signed counseling certificate your loan could close within 15 to 45 days. The loan officers we refer are with lenders who have in-house processing, underwriting and closing, which streamlines the processing of your reverse mortgage and reduces the time involved. Following a federally mandated three-day-right of rescission, which is the three days after you sign your final closing documents, your loan will be funded and you will receive the distribution option you have requested. Your money will come to you in the form of a check or electronically deposited into the checking or savings account of your choice. All distributions become part of your reverse mortgage balance. You never make a payment on your reverse mortgage.

Why do I hear so much about FHA Reverse Mortgages?

The majority of reverse mortgages are insured by FHA (FHA is an insurer and not a lender). The FHA program is the most popular because the FHA insurance is what makes this program win-win for the borrower and for the lender because it removes the risk and liability, which means the lender is willing to lend what ever amount FHA will insure. It is a totally non-recourse loan, which means that the balance can never exceed the property value. Let me show you the differences. If your property value exceeds the FHA lending limits you will be given the choice to do a Jumbo Reverse Mortgage.

What does HECM mean?

H.E.C.M. = Home Equity Conversion Mortgage… this is what the Federal Housing Administration (FHA) calls their Reverse Mortgage… almost all reverse mortgages are funded this way, because they have the lowest interest rate of all Reverse Mortgage programs. Homes in the Jumbo Category are more favorable in a non-FHA program, which I also offer. There are no income or credit requirements to qualify.

What is the interest rate?

FHA sets the interest rate on their programs and controls the fees that can be charged. HECM Reverse Mortgage interest rates are determined by the one year treasury bill, and the London Interbanking Offered Rate (LIBOR). The loan officer we refer to you can show you all of them. The rates can change when the LIBOR or Treasury Bills change. Fixed and Variable rates are available. The interest rate will be determined by the lender by the margin that is added to the offered index. Lock-Ins are available on some programs, which means you are protected from rising rates and if rates are down at the time of closing your Reverse Mortgage, you get the lower rate.

What are the fees?

• FHA Mortgage Insurance Premium or MIP; the fee that FHA charges to insure the reverse mortgage. It is two per cent (2.0%) of the Lending Limit or sometimes called the Maximum Claim Amount, which is determined by the county in which you live.
• The origination fee is where the lender makes their profit and is controlled by FHA and is limited to a maximum of two per cent (2.0%) of the lending limit.
• Other Costs are the necessary fees charged to put together your reverse mortgage and are typical on most loans; such as, the appraisal, title policy, recording fees, credit report fee, flood certification fee, etc.
• You will receive a required Good Faith Estimate of all the charges.
• Normally, the only fee you would be asked to pay up front would be for the appraisal; all the other fees would be paid at the funding of your reverse mortgage.
  
  

How do I learn more about reverse mortgages?

Your loan officer is the best source who will fully educate you in every aspect of Reverse Mortgages and will answer your questions and provide you the analyses and comparisons that meet AARP’s model specifications. After you are educated and you make a decision on the program you want, your application will be processed from start to finish and get it all done in as early as fifteen days. Call us on our direct line:
(877) FHA-HECM or (877) 342-4326 or email click on the Custom Analysis button on the left side of your screen and complete it and we’ll refer you to one of our top notch loan officers.

What do you need from me so I can know how much I can get?

The following is needed:

1. Your birth date, what you get is determined by the age of the younger of two borrowers.
2. your homes value
3. your current mortgage balance
4. your zip code
   
   Click on the Custom Analysis button on the left side of your screen and provide the information there and we’ll have one of our top notch loan officers contact you with the information.

We look forward to the opportunity of being of service to you by referring a loan officer to you, in any of the 50 states.

Call us at: (877) FHA HECM
(877) 342-4326

Or complete the information on the Contact Us button on the left side of your screen

Or complete the information on the Custom Analysis button on the left side of your screen.

Just click on either one.