A Reverse Mortgage (also called a HECM – Home Equity Conversion Mortgage or FHA Reverse Mortgage) is an excellent federally-insured mortgage program that allows borrowers age 62-years and older to withdraw equity on their home. Seniors are able to use the equity accumulated on things like monthly expenses, medical costs, and more.
This type of loan is known as a “reverse” mortgage because lenders make payments to the borrower, instead of the borrower making payments to the lender. The borrower does not pay back the loan until they sell or vacate the home. Once the primary residence is sold, the equity, interest and other HECM fees are repaid. Any proceeds beyond the owed amount belongs to the homeowners’ spouse or heirs.
How to Qualify for a Reverse Mortgage
- You must be 62-years of age or older.
- Have the financial resources to continue making payments on property charges like taxes, insurance, and HOA fees (not covered by reverse mortgage).
- Own or have made a considerable down payment on the property and use it as your primary residence.
- Participate in a consumer information session, led by a HUD-approved HECM counselor.
- Not delinquent on any federal debt and have a history of timely payment of real estate taxes and insurance premiums.
We want you to have less stress and be able to live the life you want as you reach retirement. A reverse mortgage could be the solution to do just that. Contact us today! We’re ready to work with you and help you take full advantage of this great program.